Correlation Between Check Point and National Atomic
Can any of the company-specific risk be diversified away by investing in both Check Point and National Atomic 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 Check Point and National Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Point Software and National Atomic Co, you can compare the effects of market volatilities on Check Point and National Atomic 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 Check Point with a short position of National Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and National Atomic.
Diversification Opportunities for Check Point and National Atomic
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Check and National is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and National Atomic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Atomic and Check Point 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 Check Point Software are associated (or correlated) with National Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Atomic has no effect on the direction of Check Point i.e., Check Point and National Atomic go up and down completely randomly.
Pair Corralation between Check Point and National Atomic
Assuming the 90 days trading horizon Check Point Software is expected to under-perform the National Atomic. But the stock apears to be less risky and, when comparing its historical volatility, Check Point Software is 2.05 times less risky than National Atomic. The stock trades about -0.01 of its potential returns per unit of risk. The National Atomic Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4,585 in National Atomic Co on September 3, 2025 and sell it today you would earn a total of 1,015 from holding National Atomic Co or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Check Point Software vs. National Atomic Co
Performance |
| Timeline |
| Check Point Software |
| National Atomic |
Check Point and National Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Point and National Atomic
The main advantage of trading using opposite Check Point and National Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Point position performs unexpectedly, National Atomic 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 National Atomic will offset losses from the drop in National Atomic's long position.| Check Point vs. Blackrock World Mining | Check Point vs. Zanaga Iron Ore | Check Point vs. Resolute Mining Limited | Check Point vs. Metals Exploration Plc |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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