Correlation Between Splitit Payments and Cerberus Cyber

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

By analyzing existing cross correlation between Splitit Payments and Cerberus Cyber Sentinel, you can compare the effects of market volatilities on Splitit Payments and Cerberus Cyber 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 Splitit Payments with a short position of Cerberus Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Splitit Payments and Cerberus Cyber.

Diversification Opportunities for Splitit Payments and Cerberus Cyber

0.0

Correlation Coefficient

Splitit Payments  Cerberus Cyber

Pay attention - limited upside

The 3 months correlation between Splitit and Cerberus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Splitit Payments and Cerberus Cyber Sentinel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerberus Cyber Sentinel and Splitit Payments 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 Splitit Payments are associated (or correlated) with Cerberus Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerberus Cyber Sentinel has no effect on the direction of Splitit Payments i.e., Splitit Payments and Cerberus Cyber go up and down completely randomly.

Pair Corralation between Splitit Payments and Cerberus Cyber

If you would invest  138.00  in Cerberus Cyber Sentinel on November 28, 2024 and sell it today you would lose (36.00) from holding Cerberus Cyber Sentinel or give up 26.09% of portfolio value over 90 days.

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

Splitit Payments  vs.  Cerberus Cyber Sentinel

Splitit Payments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Splitit Payments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Splitit Payments is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cerberus Cyber Sentinel

Risk-Adjusted Performance

Weak

Over the last 90 days Cerberus Cyber Sentinel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, Cerberus Cyber may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Splitit Payments and Cerberus Cyber

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

The idea behind Splitit Payments and Cerberus Cyber Sentinel 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.