Correlation Between Check Point and Sysco Corp

Can any of the company-specific risk be diversified away by investing in both Check Point and Sysco Corp 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 Sysco Corp 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 Sysco Corp, you can compare the effects of market volatilities on Check Point and Sysco Corp 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 Sysco Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and Sysco Corp.

Diversification Opportunities for Check Point and Sysco Corp

0.28

Correlation Coefficient

Check Point  Sysco Corp

Modest diversification

The 3 months correlation between Check and Sysco is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and Sysco Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysco Corp 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 Sysco Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysco Corp has no effect on the direction of Check Point i.e., Check Point and Sysco Corp go up and down completely randomly.

Pair Corralation between Check Point and Sysco Corp

Assuming the 90 days trading horizon Check Point Software is expected to generate 1.32 times more return on investment than Sysco Corp. However, Check Point is 1.32 times more volatile than Sysco Corp. It trades about 0.11 of its potential returns per unit of risk. Sysco Corp is currently generating about 0.13 per unit of risk. If you would invest  20,243  in Check Point Software on April 23, 2025 and sell it today you would earn a total of  1,942  from holding Check Point Software or generate 9.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Check Point Software  vs.  Sysco Corp

Check Point Software

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Check Point Software are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Check Point may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Sysco Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sysco Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sysco Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Check Point and Sysco Corp

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

The idea behind Check Point Software and Sysco Corp 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.