Correlation Between CyberArk Software and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and Axcelis Technologies 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 Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and Axcelis Technologies, you can compare the effects of market volatilities on CyberArk Software and Axcelis Technologies 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 Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and Axcelis Technologies.
Diversification Opportunities for CyberArk Software and Axcelis Technologies
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CyberArk and Axcelis is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies 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 Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of CyberArk Software i.e., CyberArk Software and Axcelis Technologies go up and down completely randomly.
Pair Corralation between CyberArk Software and Axcelis Technologies
Assuming the 90 days trading horizon CyberArk Software is expected to generate 1.0 times more return on investment than Axcelis Technologies. However, CyberArk Software is 1.0 times less risky than Axcelis Technologies. It trades about 0.13 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.14 per unit of risk. If you would invest 33,960 in CyberArk Software on November 27, 2024 and sell it today you would earn a total of 2,160 from holding CyberArk Software or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CyberArk Software vs. Axcelis Technologies
Performance |
| Timeline |
| CyberArk Software |
| Axcelis Technologies |
CyberArk Software and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and Axcelis Technologies
The main advantage of trading using opposite CyberArk Software and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| CyberArk Software vs. BG Foods | CyberArk Software vs. Cal Maine Foods | CyberArk Software vs. Endeavour Mining PLC | CyberArk Software vs. Harmony Gold Mining |
| Axcelis Technologies vs. SLR Investment Corp | Axcelis Technologies vs. United Microelectronics | Axcelis Technologies vs. STMICROELECTRONICS | Axcelis Technologies vs. STMicroelectronics NV |
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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