Correlation Between MAROC TELECOM and CyberArk Software

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

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

Diversification Opportunities for MAROC TELECOM and CyberArk Software

-0.13

Correlation Coefficient

MAROC TELECOM  CyberArk Software

Good diversification

The 3 months correlation between MAROC and CyberArk is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MAROC TELECOM and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and MAROC TELECOM 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 MAROC TELECOM are associated (or correlated) with CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of MAROC TELECOM i.e., MAROC TELECOM and CyberArk Software go up and down completely randomly.

Pair Corralation between MAROC TELECOM and CyberArk Software

Assuming the 90 days trading horizon MAROC TELECOM is expected to under-perform the CyberArk Software. But the stock apears to be less risky and, when comparing its historical volatility, MAROC TELECOM is 1.63 times less risky than CyberArk Software. The stock trades about -0.06 of its potential returns per unit of risk. The CyberArk Software is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  30,550  in CyberArk Software on December 29, 2024 and sell it today you would earn a total of  1,870  from holding CyberArk Software or generate 6.12% return on investment over 90 days.

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

MAROC TELECOM  vs.  CyberArk Software

MAROC TELECOM

Risk-Adjusted Performance

Very Weak

Over the last 90 days MAROC TELECOM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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. In spite of comparatively uncertain basic indicators, CyberArk Software may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with MAROC TELECOM and CyberArk Software

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

The idea behind MAROC TELECOM and CyberArk Software 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.