Correlation Between SPECTRAL MEDICAL and Check Point

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SPECTRAL MEDICAL and Check Point 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 SPECTRAL MEDICAL and Check Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPECTRAL MEDICAL and Check Point Software, you can compare the effects of market volatilities on SPECTRAL MEDICAL and Check Point 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 SPECTRAL MEDICAL with a short position of Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPECTRAL MEDICAL and Check Point.

Diversification Opportunities for SPECTRAL MEDICAL and Check Point

SPECTRALCheckDiversified AwaySPECTRALCheckDiversified Away100%
-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between SPECTRAL and Check is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SPECTRAL MEDICAL and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software and SPECTRAL MEDICAL 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 SPECTRAL MEDICAL are associated (or correlated) with Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of SPECTRAL MEDICAL i.e., SPECTRAL MEDICAL and Check Point go up and down completely randomly.

Pair Corralation between SPECTRAL MEDICAL and Check Point

Assuming the 90 days horizon SPECTRAL MEDICAL is expected to under-perform the Check Point. In addition to that, SPECTRAL MEDICAL is 2.24 times more volatile than Check Point Software. It trades about -0.05 of its total potential returns per unit of risk. Check Point Software is currently generating about -0.02 per unit of volatility. If you would invest  18,795  in Check Point Software on October 21, 2024 and sell it today you would lose (660.00) from holding Check Point Software or give up 3.51% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SPECTRAL MEDICAL  vs.  Check Point Software

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-15-10-505
JavaScript chart by amCharts 3.21.15SD4 CPW
       Timeline  
SPECTRAL MEDICAL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SPECTRAL MEDICAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.30.320.340.360.380.4
Check Point Software 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Check Point Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Check Point is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan160165170175180185190

SPECTRAL MEDICAL and Check Point Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.0-5.99-3.98-1.97-0.031.893.845.797.749.69 0.020.040.060.08
JavaScript chart by amCharts 3.21.15SD4 CPW
       Returns  

Pair Trading with SPECTRAL MEDICAL and Check Point

The main advantage of trading using opposite SPECTRAL MEDICAL and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPECTRAL MEDICAL position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.
The idea behind SPECTRAL MEDICAL and Check Point 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum


 

Trending Assets