Correlation Between Gatekeeper Systems and CyberCatch Holdings

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

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

Diversification Opportunities for Gatekeeper Systems and CyberCatch Holdings

0.88

Correlation Coefficient

Gatekeeper Systems  CyberCatch Holdings

Very poor diversification

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

Pair Corralation between Gatekeeper Systems and CyberCatch Holdings

Assuming the 90 days horizon Gatekeeper Systems is expected to generate 1.29 times less return on investment than CyberCatch Holdings. But when comparing it to its historical volatility, Gatekeeper Systems is 1.06 times less risky than CyberCatch Holdings. It trades about 0.33 of its potential returns per unit of risk. CyberCatch Holdings is currently generating about 0.4 of returns per unit of risk over similar time horizon. 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 Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Gatekeeper Systems  vs.  CyberCatch Holdings

Gatekeeper Systems

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gatekeeper Systems are ranked lower than 26 (%) 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.

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.

Pair Trading with Gatekeeper Systems and CyberCatch Holdings

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

The idea behind Gatekeeper Systems and CyberCatch Holdings 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..