Correlation Between CyberArk Software and NH HOTEL
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and NH HOTEL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CyberArk Software and NH HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and NH HOTEL GROUP, you can compare the effects of market volatilities on CyberArk Software and NH HOTEL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CyberArk Software with a short position of NH HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and NH HOTEL.
Diversification Opportunities for CyberArk Software and NH HOTEL
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CyberArk and NH5 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and NH HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH HOTEL GROUP and CyberArk Software is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CyberArk Software are associated (or correlated) with NH HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH HOTEL GROUP has no effect on the direction of CyberArk Software i.e., CyberArk Software and NH HOTEL go up and down completely randomly.
Pair Corralation between CyberArk Software and NH HOTEL
Assuming the 90 days trading horizon CyberArk Software is expected to generate 3.36 times more return on investment than NH HOTEL. However, CyberArk Software is 3.36 times more volatile than NH HOTEL GROUP. It trades about 0.04 of its potential returns per unit of risk. NH HOTEL GROUP is currently generating about -0.11 per unit of risk. If you would invest 34,230 in CyberArk Software on November 29, 2024 and sell it today you would earn a total of 450.00 from holding CyberArk Software or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CyberArk Software vs. NH HOTEL GROUP
Performance |
| Timeline |
| CyberArk Software |
| NH HOTEL GROUP |
CyberArk Software and NH HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and NH HOTEL
The main advantage of trading using opposite CyberArk Software and NH HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, NH HOTEL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NH HOTEL will offset losses from the drop in NH HOTEL's long position.| CyberArk Software vs. Cars Inc | CyberArk Software vs. STORAGEVAULT CANADA INC | CyberArk Software vs. Alliance Data Systems | CyberArk Software vs. Linedata Services SA |
| NH HOTEL vs. Easy Software AG | NH HOTEL vs. Keck Seng Investments | NH HOTEL vs. VITEC SOFTWARE GROUP | NH HOTEL vs. USU Software AG |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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