Correlation Between Glimpse and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Glimpse 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 Glimpse and CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glimpse Group and CyberArk Software, you can compare the effects of market volatilities on Glimpse 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 Glimpse with a short position of CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glimpse and CyberArk Software.
Diversification Opportunities for Glimpse and CyberArk Software
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Glimpse and CyberArk is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and Glimpse 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 Glimpse 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 Glimpse i.e., Glimpse and CyberArk Software go up and down completely randomly.
Pair Corralation between Glimpse and CyberArk Software
Given the investment horizon of 90 days Glimpse Group is expected to under-perform the CyberArk Software. In addition to that, Glimpse is 2.71 times more volatile than CyberArk Software. It trades about -0.05 of its total potential returns per unit of risk. CyberArk Software is currently generating about 0.12 per unit of volatility. If you would invest 13,288 in CyberArk Software on August 27, 2024 and sell it today you would earn a total of 18,685 from holding CyberArk Software or generate 140.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glimpse Group vs. CyberArk Software
Performance |
| Timeline |
| Glimpse Group |
| CyberArk Software |
Glimpse and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glimpse and CyberArk Software
The main advantage of trading using opposite Glimpse and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glimpse 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.| Glimpse vs. GigaCloud Technology Class | Glimpse vs. Arqit Quantum | Glimpse vs. Telos Corp | Glimpse vs. Cemtrex |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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