Correlation Between CyberArk Software and SLR Investment
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and SLR Investment 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 SLR Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and SLR Investment Corp, you can compare the effects of market volatilities on CyberArk Software and SLR Investment 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 SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and SLR Investment.
Diversification Opportunities for CyberArk Software and SLR Investment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CyberArk and SLR is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp 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 SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of CyberArk Software i.e., CyberArk Software and SLR Investment go up and down completely randomly.
Pair Corralation between CyberArk Software and SLR Investment
Assuming the 90 days trading horizon CyberArk Software is expected to generate 2.18 times more return on investment than SLR Investment. However, CyberArk Software is 2.18 times more volatile than SLR Investment Corp. It trades about 0.16 of its potential returns per unit of risk. SLR Investment Corp is currently generating about 0.12 per unit of risk. If you would invest 27,780 in CyberArk Software on September 12, 2024 and sell it today you would earn a total of 3,010 from holding CyberArk Software or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CyberArk Software vs. SLR Investment Corp
Performance |
| Timeline |
| CyberArk Software |
| SLR Investment Corp |
CyberArk Software and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and SLR Investment
The main advantage of trading using opposite CyberArk Software and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc |
| SLR Investment vs. Ameriprise Financial | SLR Investment vs. Ares Management Corp | SLR Investment vs. Superior Plus Corp | SLR Investment vs. SIVERS SEMICONDUCTORS AB |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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