Correlation Between Cognizant Technology and ANGLE Plc
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and ANGLE Plc 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 Cognizant Technology and ANGLE Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognizant Technology Solutions and ANGLE plc, you can compare the effects of market volatilities on Cognizant Technology and ANGLE Plc 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 Cognizant Technology with a short position of ANGLE Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and ANGLE Plc.
Diversification Opportunities for Cognizant Technology and ANGLE Plc
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cognizant and ANGLE is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and ANGLE plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLE plc and Cognizant Technology 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 Cognizant Technology Solutions are associated (or correlated) with ANGLE Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLE plc has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and ANGLE Plc go up and down completely randomly.
Pair Corralation between Cognizant Technology and ANGLE Plc
Assuming the 90 days trading horizon Cognizant Technology is expected to generate 2.85 times less return on investment than ANGLE Plc. But when comparing it to its historical volatility, Cognizant Technology Solutions is 6.83 times less risky than ANGLE Plc. It trades about 0.05 of its potential returns per unit of risk. ANGLE plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,500 in ANGLE plc on September 12, 2024 and sell it today you would lose (500.00) from holding ANGLE plc or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.6% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. ANGLE plc
Performance |
| Timeline |
| Cognizant Technology |
| ANGLE plc |
Cognizant Technology and ANGLE Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and ANGLE Plc
The main advantage of trading using opposite Cognizant Technology and ANGLE Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, ANGLE Plc 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 ANGLE Plc will offset losses from the drop in ANGLE Plc's long position.| Cognizant Technology vs. Hong Kong Land | Cognizant Technology vs. Neometals | Cognizant Technology vs. Coor Service Management | Cognizant Technology vs. Fidelity Sustainable USD |
| ANGLE Plc vs. Sabien Technology Group | ANGLE Plc vs. Cognizant Technology Solutions | ANGLE Plc vs. Gaztransport et Technigaz | ANGLE Plc vs. Broadridge Financial Solutions |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |