Correlation Between CyberCatch Holdings and Martello Technologies

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

By analyzing existing cross correlation between CyberCatch Holdings and Martello Technologies Group, you can compare the effects of market volatilities on CyberCatch Holdings and Martello Technologies 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 Martello Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CyberCatch Holdings and Martello Technologies.

Diversification Opportunities for CyberCatch Holdings and Martello Technologies

-0.14

Correlation Coefficient

CyberCatch Holdings  Martello Technologies

Good diversification

The 3 months correlation between CyberCatch and Martello is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CyberCatch Holdings and Martello Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martello Technologies 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 Martello Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martello Technologies has no effect on the direction of CyberCatch Holdings i.e., CyberCatch Holdings and Martello Technologies go up and down completely randomly.

Pair Corralation between CyberCatch Holdings and Martello Technologies

Assuming the 90 days trading horizon CyberCatch Holdings is expected to generate 0.27 times more return on investment than Martello Technologies. However, CyberCatch Holdings is 3.68 times less risky than Martello Technologies. It trades about 0.4 of its potential returns per unit of risk. Martello Technologies Group is currently generating about 0.09 per unit of risk. If you would invest  98.00  in CyberCatch Holdings on April 24, 2025 and sell it today you would earn a total of  363.00  from holding CyberCatch Holdings or generate 370.41% return on investment over 90 days.

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

CyberCatch Holdings  vs.  Martello Technologies Group

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 31 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental drivers, CyberCatch Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Martello Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Martello Technologies Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile essential indicators, Martello Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CyberCatch Holdings and Martello Technologies

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

The idea behind CyberCatch Holdings and Martello Technologies Group 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.