Correlation Between Check Point and CGI

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

Diversification Opportunities for Check Point and CGI

-0.02

Correlation Coefficient

Check Point  CGI

Good diversification

The 3 months correlation between Check and CGI is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and CGI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGI Inc 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 CGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGI Inc has no effect on the direction of Check Point i.e., Check Point and CGI go up and down completely randomly.

Pair Corralation between Check Point and CGI

Given the investment horizon of 90 days Check Point Software is expected to generate 0.96 times more return on investment than CGI. However, Check Point Software is 1.04 times less risky than CGI. It trades about -0.02 of its potential returns per unit of risk. CGI Inc is currently generating about -0.07 per unit of risk. If you would invest  18,762  in Check Point Software on August 26, 2025 and sell it today you would lose (407.00) from holding Check Point Software or give up 2.17% of portfolio value over 90 days.

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

Check Point Software  vs.  CGI Inc

Check Point Software

Risk-Adjusted Performance

Weakest

Over the last 90 days Check Point Software has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Check Point is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

CGI Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CGI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Check Point and CGI

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

The idea behind Check Point Software and CGI Inc 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.