Correlation Between CyberArk Software and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both CyberArk Software and Zijin Mining 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 Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and Zijin Mining Group, you can compare the effects of market volatilities on CyberArk Software and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and Zijin Mining.
Diversification Opportunities for CyberArk Software and Zijin Mining
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CyberArk and Zijin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of CyberArk Software i.e., CyberArk Software and Zijin Mining go up and down completely randomly.
Pair Corralation between CyberArk Software and Zijin Mining
Assuming the 90 days trading horizon CyberArk Software is expected to under-perform the Zijin Mining. In addition to that, CyberArk Software is 1.07 times more volatile than Zijin Mining Group. It trades about -0.07 of its total potential returns per unit of risk. Zijin Mining Group is currently generating about -0.01 per unit of volatility. If you would invest 184.00 in Zijin Mining Group on December 1, 2024 and sell it today you would lose (2.00) from holding Zijin Mining Group or give up 1.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
CyberArk Software vs. Zijin Mining Group
Performance |
Timeline |
CyberArk Software |
Zijin Mining Group |
CyberArk Software and Zijin Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CyberArk Software and Zijin Mining
The main advantage of trading using opposite CyberArk Software and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.CyberArk Software vs. COSTCO WHOLESALE CDR | CyberArk Software vs. REVO INSURANCE SPA | CyberArk Software vs. Ross Stores | CyberArk Software vs. SPARTAN STORES |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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