Correlation Between Apple and CyberArk Software

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Apple Inc  vs.  CyberArk Software

 Performance 
       Timeline  
Apple Inc 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Apple exhibited solid returns over the last few months and may actually be approaching a breakup point.
CyberArk Software 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CyberArk Software are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CyberArk Software is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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.
The idea behind Apple Inc 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.
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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