Correlation Between G-III Apparel and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both G-III Apparel and CyberArk Software 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 G-III Apparel and CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G III Apparel Group and CyberArk Software, you can compare the effects of market volatilities on G-III Apparel and CyberArk Software 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 G-III Apparel with a short position of CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of G-III Apparel and CyberArk Software.
Diversification Opportunities for G-III Apparel and CyberArk Software
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between G-III and CyberArk is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding G III Apparel Group and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and G-III Apparel 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 G III Apparel Group are associated (or correlated) with CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of G-III Apparel i.e., G-III Apparel and CyberArk Software go up and down completely randomly.
Pair Corralation between G-III Apparel and CyberArk Software
Assuming the 90 days trading horizon G-III Apparel is expected to generate 3.26 times less return on investment than CyberArk Software. In addition to that, G-III Apparel is 1.37 times more volatile than CyberArk Software. It trades about 0.02 of its total potential returns per unit of risk. CyberArk Software is currently generating about 0.1 per unit of volatility. If you would invest 18,580 in CyberArk Software on September 2, 2024 and sell it today you would earn a total of 11,450 from holding CyberArk Software or generate 61.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G III Apparel Group vs. CyberArk Software
Performance |
| Timeline |
| G III Apparel |
| CyberArk Software |
G-III Apparel and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G-III Apparel and CyberArk Software
The main advantage of trading using opposite G-III Apparel and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G-III Apparel position performs unexpectedly, CyberArk Software 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 CyberArk Software will offset losses from the drop in CyberArk Software's long position.| G-III Apparel vs. ASURE SOFTWARE | G-III Apparel vs. Rogers Communications | G-III Apparel vs. AXWAY SOFTWARE EO | G-III Apparel vs. Chunghwa Telecom Co |
| CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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