Correlation Between Cyren and A10 Network

Can any of the company-specific risk be diversified away by investing in both Cyren and A10 Network 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 Cyren and A10 Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cyren and A10 Network, you can compare the effects of market volatilities on Cyren and A10 Network 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 Cyren with a short position of A10 Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyren and A10 Network.

Diversification Opportunities for Cyren and A10 Network

-0.09

Correlation Coefficient

Cyren  A10 Network

Good diversification

The 3 months correlation between Cyren and A10 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cyren and A10 Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A10 Network and Cyren 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 Cyren are associated (or correlated) with A10 Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A10 Network has no effect on the direction of Cyren i.e., Cyren and A10 Network go up and down completely randomly.

Pair Corralation between Cyren and A10 Network

If you would invest  1,352  in A10 Network on January 26, 2024 and sell it today you would earn a total of  19.00  from holding A10 Network or generate 1.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Cyren  vs.  A10 Network

Cyren

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyren has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cyren is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

A10 Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days A10 Network has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, A10 Network is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Cyren and A10 Network

The main advantage of trading using opposite Cyren and A10 Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyren position performs unexpectedly, A10 Network 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 A10 Network will offset losses from the drop in A10 Network's long position.

The idea behind Cyren and A10 Network 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.