Correlation Between Check Point and Qualys

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

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

Diversification Opportunities for Check Point and Qualys

0.36

Correlation Coefficient

Check Point  Qualys

Weak diversification

The 3 months correlation between Check and Qualys is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and Qualys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualys Inc and Check Point 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 Check Point Software are associated (or correlated) with Qualys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualys Inc has no effect on the direction of Check Point i.e., Check Point and Qualys go up and down completely randomly.

Pair Corralation between Check Point and Qualys

Given the investment horizon of 90 days Check Point Software is expected to under-perform the Qualys. In addition to that, Check Point is 1.41 times more volatile than Qualys Inc. It trades about -0.1 of its total potential returns per unit of risk. Qualys Inc is currently generating about 0.03 per unit of volatility. If you would invest  12,816  in Qualys Inc on May 3, 2025 and sell it today you would earn a total of  237.00  from holding Qualys Inc or generate 1.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Check Point Software  vs.  Qualys Inc

Check Point Software

Risk-Adjusted Performance

Very Weak

Over the last 90 days Check Point Software has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Qualys Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Qualys Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Qualys 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 Check Point and Qualys

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

The idea behind Check Point Software and Qualys Inc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.