Correlation Between CyberCatch Holdings and Gatekeeper Systems

Can any of the company-specific risk be diversified away by investing in both CyberCatch Holdings and Gatekeeper Systems 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 CyberCatch Holdings and Gatekeeper Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CyberCatch Holdings and Gatekeeper Systems, you can compare the effects of market volatilities on CyberCatch Holdings and Gatekeeper Systems 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 CyberCatch Holdings with a short position of Gatekeeper Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberCatch Holdings and Gatekeeper Systems.

Diversification Opportunities for CyberCatch Holdings and Gatekeeper Systems

0.88

Correlation Coefficient

CyberCatch Holdings  Gatekeeper Systems

Very poor diversification

The 3 months correlation between CyberCatch and Gatekeeper is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CyberCatch Holdings and Gatekeeper Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gatekeeper Systems and CyberCatch Holdings 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 CyberCatch Holdings are associated (or correlated) with Gatekeeper Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatekeeper Systems has no effect on the direction of CyberCatch Holdings i.e., CyberCatch Holdings and Gatekeeper Systems go up and down completely randomly.

Pair Corralation between CyberCatch Holdings and Gatekeeper Systems

Assuming the 90 days trading horizon CyberCatch Holdings is expected to generate 1.08 times more return on investment than Gatekeeper Systems. However, CyberCatch Holdings is 1.08 times more volatile than Gatekeeper Systems. It trades about 0.42 of its potential returns per unit of risk. Gatekeeper Systems is currently generating about 0.33 per unit of risk. If you would invest  88.00  in CyberCatch Holdings on April 22, 2025 and sell it today you would earn a total of  362.00  from holding CyberCatch Holdings or generate 411.36% return on investment over 90 days.

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

CyberCatch Holdings  vs.  Gatekeeper Systems

CyberCatch Holdings

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CyberCatch Holdings are ranked lower than 33 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental drivers, CyberCatch Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Gatekeeper Systems

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gatekeeper Systems are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Gatekeeper Systems showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CyberCatch Holdings and Gatekeeper Systems

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

The idea behind CyberCatch Holdings and Gatekeeper Systems 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.