Correlation Between CyberArk Software and OneApex

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

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

Diversification Opportunities for CyberArk Software and OneApex

0.34

Correlation Coefficient

CyberArk Software  OneApex

Weak diversification

The 3 months correlation between CyberArk and OneApex is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and OneApex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneApex Limited 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 OneApex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneApex Limited has no effect on the direction of CyberArk Software i.e., CyberArk Software and OneApex go up and down completely randomly.

Pair Corralation between CyberArk Software and OneApex

Assuming the 90 days trading horizon CyberArk Software is expected to generate 1.78 times less return on investment than OneApex. But when comparing it to its historical volatility, CyberArk Software is 4.24 times less risky than OneApex. It trades about 0.11 of its potential returns per unit of risk. OneApex Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  8.30  in OneApex Limited on October 4, 2024 and sell it today you would earn a total of  1.00  from holding OneApex Limited or generate 12.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CyberArk Software  vs.  OneApex Limited

CyberArk Software

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CyberArk Software are ranked lower than 9 (%) 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.

OneApex Limited

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OneApex Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, OneApex reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CyberArk Software and OneApex

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

The idea behind CyberArk Software and OneApex Limited 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.