Correlation Between Joint Stock and Check Point

Can any of the company-specific risk be diversified away by investing in both Joint Stock and Check Point 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 Joint Stock and Check Point into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Joint Stock and Check Point

0.06

Correlation Coefficient

Joint Stock  Check Point

Significant diversification

The 3 months correlation between Joint and Check is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software and Joint Stock 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 Joint Stock are associated (or correlated) with Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of Joint Stock i.e., Joint Stock and Check Point go up and down completely randomly.

Pair Corralation between Joint Stock and Check Point

Given the investment horizon of 90 days Joint Stock is expected to under-perform the Check Point. In addition to that, Joint Stock is 1.12 times more volatile than Check Point Software. It trades about -0.22 of its total potential returns per unit of risk. Check Point Software is currently generating about -0.02 per unit of volatility. 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Joint Stock  vs.  Check Point Software

Joint Stock

Risk-Adjusted Performance

Weakest

Over the last 90 days Joint Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Joint Stock and Check Point

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

The idea behind Joint Stock and Check Point Software 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.