Correlation Between CyberArk Software and Zuora

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

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

Diversification Opportunities for CyberArk Software and Zuora

0.42

Correlation Coefficient

CyberArk Software  Zuora

Very weak diversification

The 3 months correlation between CyberArk and Zuora is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding CyberArk Software and Zuora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zuora Inc and CyberArk Software 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 CyberArk Software are associated (or correlated) with Zuora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zuora Inc has no effect on the direction of CyberArk Software i.e., CyberArk Software and Zuora go up and down completely randomly.

Pair Corralation between CyberArk Software and Zuora

If you would invest  36,070  in CyberArk Software on May 7, 2025 and sell it today you would earn a total of  4,830  from holding CyberArk Software or generate 13.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.64%
Values	Daily Returns

CyberArk Software  vs.  Zuora Inc

CyberArk Software

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CyberArk Software are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, CyberArk Software reported solid returns over the last few months and may actually be approaching a breakup point.

Zuora Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with CyberArk Software and Zuora

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

The idea behind CyberArk Software and Zuora 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.