Correlation Between CyberArk Software and Fleetcor Technologies
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and Fleetcor 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 Fleetcor 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 Fleetcor Technologies, you can compare the effects of market volatilities on CyberArk Software and Fleetcor 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 Fleetcor Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and Fleetcor Technologies.
Diversification Opportunities for CyberArk Software and Fleetcor Technologies
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CyberArk and Fleetcor is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Fleetcor Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fleetcor 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 Fleetcor Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fleetcor Technologies has no effect on the direction of CyberArk Software i.e., CyberArk Software and Fleetcor Technologies go up and down completely randomly.
Pair Corralation between CyberArk Software and Fleetcor Technologies
Given the investment horizon of 90 days CyberArk Software is expected to generate 1.3 times more return on investment than Fleetcor Technologies. However, CyberArk Software is 1.3 times more volatile than Fleetcor Technologies. It trades about 0.08 of its potential returns per unit of risk. Fleetcor Technologies is currently generating about 0.06 per unit of risk. If you would invest 14,724 in CyberArk Software on August 23, 2024 and sell it today you would earn a total of 16,966 from holding CyberArk Software or generate 115.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
CyberArk Software vs. Fleetcor Technologies
Performance |
| Timeline |
| CyberArk Software |
| Fleetcor Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CyberArk Software and Fleetcor Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CyberArk Software and Fleetcor Technologies
The main advantage of trading using opposite CyberArk Software and Fleetcor Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, Fleetcor 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 Fleetcor Technologies will offset losses from the drop in Fleetcor Technologies' long position.| CyberArk Software vs. F5 Networks | CyberArk Software vs. Qualys Inc | CyberArk Software vs. VeriSign | CyberArk Software vs. Amdocs |
| Fleetcor Technologies vs. Cumulus Media Class | Fleetcor Technologies vs. WEC Energy Group | Fleetcor Technologies vs. CenterPoint Energy | Fleetcor Technologies vs. Vistra Energy Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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