Correlation Between CyberArk Software and Evertec

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

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

Diversification Opportunities for CyberArk Software and Evertec

-0.35

Correlation Coefficient

CyberArk Software  Evertec

Very good diversification

The 3 months correlation between CyberArk and Evertec is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Evertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertec 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 Evertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertec has no effect on the direction of CyberArk Software i.e., CyberArk Software and Evertec go up and down completely randomly.

Pair Corralation between CyberArk Software and Evertec

Given the investment horizon of 90 days CyberArk Software is expected to generate 1.19 times less return on investment than Evertec. In addition to that, CyberArk Software is 1.1 times more volatile than Evertec. It trades about 0.04 of its total potential returns per unit of risk. Evertec is currently generating about 0.06 per unit of volatility. If you would invest  3,427  in Evertec on December 30, 2024 and sell it today you would earn a total of  238.00  from holding Evertec or generate 6.94% return on investment over 90 days.

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

CyberArk Software  vs.  Evertec

CyberArk Software

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CyberArk Software are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal fundamental drivers, CyberArk Software may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Evertec

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Evertec are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Evertec may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with CyberArk Software and Evertec

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

The idea behind CyberArk Software and Evertec 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.