Correlation Between CyberArk Software and Payoneer Global

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

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

Diversification Opportunities for CyberArk Software and Payoneer Global

0.81

Correlation Coefficient

CyberArk Software  Payoneer Global

Very poor diversification

The 3 months correlation between CyberArk and Payoneer is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of CyberArk Software i.e., CyberArk Software and Payoneer Global go up and down completely randomly.

Pair Corralation between CyberArk Software and Payoneer Global

Given the investment horizon of 90 days CyberArk Software is expected to generate 0.94 times more return on investment than Payoneer Global. However, CyberArk Software is 1.07 times less risky than Payoneer Global. It trades about 0.01 of its potential returns per unit of risk. Payoneer Global is currently generating about -0.16 per unit of risk. If you would invest  31,973  in CyberArk Software on September 23, 2024 and sell it today you would lose (58.00) from holding CyberArk Software or give up 0.18% of portfolio value over 90 days.

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

CyberArk Software  vs.  Payoneer Global

CyberArk Software

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CyberArk Software are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, CyberArk Software may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Payoneer Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CyberArk Software and Payoneer Global

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

The idea behind CyberArk Software and Payoneer Global 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.