Correlation Between VHAI and CyberArk Software

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

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

Diversification Opportunities for VHAI and CyberArk Software

0.0

Correlation Coefficient

VHAI  CyberArk Software

Pay attention - limited upside

The 3 months correlation between VHAI and CyberArk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VHAI and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and VHAI 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 VHAI 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 VHAI i.e., VHAI and CyberArk Software go up and down completely randomly.

Pair Corralation between VHAI and CyberArk Software

If you would invest  31,960  in CyberArk Software on December 28, 2024 and sell it today you would earn a total of  1,614  from holding CyberArk Software or generate 5.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

VHAI  vs.  CyberArk Software

VHAI

Risk-Adjusted Performance

Very Weak

Over the last 90 days VHAI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, VHAI is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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.

Pair Trading with VHAI and CyberArk Software

The main advantage of trading using opposite VHAI and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VHAI 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 VHAI 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.