Correlation Between Team Internet and Check Point

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

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

Diversification Opportunities for Team Internet and Check Point

0.47

Correlation Coefficient

Team Internet  Check Point

Very weak diversification

The 3 months correlation between Team and Check is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Team Internet Group 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 Team Internet 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 Team Internet Group 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 Team Internet i.e., Team Internet and Check Point go up and down completely randomly.

Pair Corralation between Team Internet and Check Point

Assuming the 90 days trading horizon Team Internet Group is expected to generate 1.76 times more return on investment than Check Point. However, Team Internet is 1.76 times more volatile than Check Point Software. It trades about 0.14 of its potential returns per unit of risk. Check Point Software is currently generating about 0.04 per unit of risk. If you would invest  5,310  in Team Internet Group on April 22, 2025 and sell it today you would earn a total of  1,340  from holding Team Internet Group or generate 25.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Team Internet Group  vs.  Check Point Software

Team Internet Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Team Internet Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Team Internet exhibited solid returns over the last few months and may actually be approaching a breakup point.

Check Point Software

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Check Point Software are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Check Point is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Team Internet and Check Point

The main advantage of trading using opposite Team Internet and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Team Internet 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 Team Internet Group 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.