Correlation Between Check Point and Multilaser Industrial

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

Diversification Opportunities for Check Point and Multilaser Industrial

0.45

Correlation Coefficient

Check Point  Multilaser Industrial

Very weak diversification

The 3 months correlation between Check and Multilaser is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and Multilaser Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multilaser Industrial 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 Multilaser Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multilaser Industrial has no effect on the direction of Check Point i.e., Check Point and Multilaser Industrial go up and down completely randomly.

Pair Corralation between Check Point and Multilaser Industrial

Assuming the 90 days trading horizon Check Point Software is expected to generate 0.09 times more return on investment than Multilaser Industrial. However, Check Point Software is 10.62 times less risky than Multilaser Industrial. It trades about -0.14 of its potential returns per unit of risk. Multilaser Industrial SA is currently generating about -0.09 per unit of risk. If you would invest  62,811  in Check Point Software on April 20, 2025 and sell it today you would lose (1,599) from holding Check Point Software or give up 2.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Check Point Software  vs.  Multilaser Industrial SA

Check Point Software

Risk-Adjusted Performance

Very Weak

Over the last 90 days Check Point Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Check Point is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Multilaser Industrial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Multilaser Industrial SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Check Point and Multilaser Industrial

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

The idea behind Check Point Software and Multilaser Industrial SA 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.