Correlation Between CyberArk Software and PREMIER FOODS

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Can any of the company-specific risk be diversified away by investing in both CyberArk Software and PREMIER FOODS 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 PREMIER FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CyberArk Software and PREMIER FOODS, you can compare the effects of market volatilities on CyberArk Software and PREMIER FOODS 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 PREMIER FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberArk Software and PREMIER FOODS.

Diversification Opportunities for CyberArk Software and PREMIER FOODS

CyberArkPREMIERDiversified AwayCyberArkPREMIERDiversified Away100%
-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between CyberArk and PREMIER is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and PREMIER FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PREMIER FOODS 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 PREMIER FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PREMIER FOODS has no effect on the direction of CyberArk Software i.e., CyberArk Software and PREMIER FOODS go up and down completely randomly.

Pair Corralation between CyberArk Software and PREMIER FOODS

Assuming the 90 days trading horizon CyberArk Software is expected to generate 1.77 times more return on investment than PREMIER FOODS. However, CyberArk Software is 1.77 times more volatile than PREMIER FOODS. It trades about 0.2 of its potential returns per unit of risk. PREMIER FOODS is currently generating about 0.02 per unit of risk. If you would invest  25,450  in CyberArk Software on October 31, 2024 and sell it today you would earn a total of  8,780  from holding CyberArk Software or generate 34.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

CyberArk Software  vs.  PREMIER FOODS

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -1001020
JavaScript chart by amCharts 3.21.15CYB FOJ1
       Timeline  
CyberArk Software 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in CyberArk Software are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, CyberArk Software unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan260280300320340
PREMIER FOODS 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in PREMIER FOODS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, PREMIER FOODS is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2.12.152.22.252.32.35

CyberArk Software and PREMIER FOODS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.23-6.17-4.1-2.03-0.032.144.356.568.7710.98 0.050.100.15
JavaScript chart by amCharts 3.21.15CYB FOJ1
       Returns  

Pair Trading with CyberArk Software and PREMIER FOODS

The main advantage of trading using opposite CyberArk Software and PREMIER FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CyberArk Software position performs unexpectedly, PREMIER FOODS 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 PREMIER FOODS will offset losses from the drop in PREMIER FOODS's long position.
The idea behind CyberArk Software and PREMIER FOODS 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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