Correlation Between CyberArk Software and Amalphi Ag

Can any of the company-specific risk be diversified away by investing in both CyberArk Software and Amalphi Ag 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 Amalphi Ag into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CyberArk Software and amalphi ag, you can compare the effects of market volatilities on CyberArk Software and Amalphi Ag 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 Amalphi Ag. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and Amalphi Ag.

Diversification Opportunities for CyberArk Software and Amalphi Ag

-0.8

Correlation Coefficient

CyberArk Software  Amalphi Ag

Pay attention - limited upside

The 3 months correlation between CyberArk and Amalphi is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and amalphi ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on amalphi ag 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 Amalphi Ag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of amalphi ag has no effect on the direction of CyberArk Software i.e., CyberArk Software and Amalphi Ag go up and down completely randomly.

Pair Corralation between CyberArk Software and Amalphi Ag

Assuming the 90 days trading horizon CyberArk Software is expected to generate 0.26 times more return on investment than Amalphi Ag. However, CyberArk Software is 3.89 times less risky than Amalphi Ag. It trades about 0.13 of its potential returns per unit of risk. amalphi ag is currently generating about 0.0 per unit of risk. If you would invest  24,410  in CyberArk Software on September 15, 2024 and sell it today you would earn a total of  5,500  from holding CyberArk Software or generate 22.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

CyberArk Software  vs.  amalphi ag

CyberArk Software

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CyberArk Software are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CyberArk Software unveiled solid returns over the last few months and may actually be approaching a breakup point.

amalphi ag

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days amalphi ag has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amalphi Ag is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CyberArk Software and Amalphi Ag

The main advantage of trading using opposite CyberArk Software and Amalphi Ag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, Amalphi Ag 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 Amalphi Ag will offset losses from the drop in Amalphi Ag's long position.

The idea behind CyberArk Software and amalphi ag 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.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.