Correlation Between Pagaya Technologies and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Pagaya Technologies 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 Pagaya Technologies and CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pagaya Technologies and CyberArk Software, you can compare the effects of market volatilities on Pagaya Technologies 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 Pagaya Technologies with a short position of CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pagaya Technologies and CyberArk Software.
Diversification Opportunities for Pagaya Technologies and CyberArk Software
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pagaya and CyberArk is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies i.e., Pagaya Technologies and CyberArk Software go up and down completely randomly.
Pair Corralation between Pagaya Technologies and CyberArk Software
Considering the 90-day investment horizon Pagaya Technologies is expected to generate 1.0 times less return on investment than CyberArk Software. In addition to that, Pagaya Technologies is 2.87 times more volatile than CyberArk Software. It trades about 0.03 of its total potential returns per unit of risk. CyberArk Software is currently generating about 0.09 per unit of volatility. If you would invest 13,738 in CyberArk Software on August 27, 2024 and sell it today you would earn a total of 18,235 from holding CyberArk Software or generate 132.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pagaya Technologies vs. CyberArk Software
Performance |
| Timeline |
| Pagaya Technologies |
| CyberArk Software |
Pagaya Technologies and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pagaya Technologies and CyberArk Software
The main advantage of trading using opposite Pagaya Technologies and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya Technologies 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.| Pagaya Technologies vs. GigaCloud Technology Class | Pagaya Technologies vs. Arqit Quantum | Pagaya Technologies vs. Cemtrex | Pagaya Technologies vs. Rapid7 Inc |
| CyberArk Software vs. GigaCloud Technology Class | CyberArk Software vs. Arqit Quantum | CyberArk Software vs. Cemtrex | CyberArk Software vs. Rapid7 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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