Correlation Between Apple and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and CyberArk Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and CyberArk Software, you can compare the effects of market volatilities on Apple 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 Apple with a short position of CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and CyberArk Software.
Diversification Opportunities for Apple and CyberArk Software
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apple and CyberArk is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software and Apple 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 Apple Inc 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 Apple i.e., Apple and CyberArk Software go up and down completely randomly.
Pair Corralation between Apple and CyberArk Software
Assuming the 90 days trading horizon Apple Inc is expected to generate 1.04 times more return on investment than CyberArk Software. However, Apple is 1.04 times more volatile than CyberArk Software. It trades about 0.18 of its potential returns per unit of risk. CyberArk Software is currently generating about 0.02 per unit of risk. If you would invest 19,541 in Apple Inc on September 2, 2025 and sell it today you would earn a total of 4,409 from holding Apple Inc or generate 22.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. CyberArk Software
Performance |
| Timeline |
| Apple Inc |
| CyberArk Software |
Apple and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and CyberArk Software
The main advantage of trading using opposite Apple and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. United Rentals | Apple vs. STRAYER EDUCATION | Apple vs. G8 EDUCATION | Apple vs. BE Semiconductor Industries |
| CyberArk Software vs. STORAGEVAULT CANADA INC | CyberArk Software vs. Information Services International Dentsu | CyberArk Software vs. Chalice Mining Limited | CyberArk Software vs. China Datang |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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