Correlation Between Nayax and Cerberus Cyber
Can any of the company-specific risk be diversified away by investing in both Nayax and Cerberus Cyber 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 Nayax and Cerberus Cyber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nayax and Cerberus Cyber Sentinel, you can compare the effects of market volatilities on Nayax and Cerberus Cyber 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 Nayax with a short position of Cerberus Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nayax and Cerberus Cyber.
Diversification Opportunities for Nayax and Cerberus Cyber
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nayax and Cerberus is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nayax and Cerberus Cyber Sentinel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerberus Cyber Sentinel and Nayax 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 Nayax are associated (or correlated) with Cerberus Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerberus Cyber Sentinel has no effect on the direction of Nayax i.e., Nayax and Cerberus Cyber go up and down completely randomly.
Pair Corralation between Nayax and Cerberus Cyber
Given the investment horizon of 90 days Nayax is expected to generate 0.47 times more return on investment than Cerberus Cyber. However, Nayax is 2.13 times less risky than Cerberus Cyber. It trades about 0.07 of its potential returns per unit of risk. Cerberus Cyber Sentinel is currently generating about 0.02 per unit of risk. If you would invest 1,905 in Nayax on August 25, 2024 and sell it today you would earn a total of 964.00 from holding Nayax or generate 50.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.38% |
| Values | Daily Returns |
Nayax vs. Cerberus Cyber Sentinel
Performance |
| Timeline |
| Nayax |
| Cerberus Cyber Sentinel |
Nayax and Cerberus Cyber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nayax and Cerberus Cyber
The main advantage of trading using opposite Nayax and Cerberus Cyber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nayax position performs unexpectedly, Cerberus Cyber 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 Cerberus Cyber will offset losses from the drop in Cerberus Cyber's long position.The idea behind Nayax and Cerberus Cyber Sentinel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cerberus Cyber vs. Hub Cyber Security | Cerberus Cyber vs. Hub Cyber Security | Cerberus Cyber vs. Arqit Quantum | Cerberus Cyber vs. Pagaya Technologies |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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