Correlation Between Cognizant Technology and Abrdn Property
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and Abrdn Property 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 Abrdn Property 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 abrdn Property Income, you can compare the effects of market volatilities on Cognizant Technology and Abrdn Property 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 Abrdn Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and Abrdn Property.
Diversification Opportunities for Cognizant Technology and Abrdn Property
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cognizant and Abrdn is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income 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 Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and Abrdn Property go up and down completely randomly.
Pair Corralation between Cognizant Technology and Abrdn Property
Assuming the 90 days trading horizon Cognizant Technology is expected to generate 38.4 times less return on investment than Abrdn Property. But when comparing it to its historical volatility, Cognizant Technology Solutions is 39.01 times less risky than Abrdn Property. It trades about 0.05 of its potential returns per unit of risk. abrdn Property Income is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,629 in abrdn Property Income on September 12, 2024 and sell it today you would earn a total of 1,431 from holding abrdn Property Income or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.6% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. abrdn Property Income
Performance |
| Timeline |
| Cognizant Technology |
| abrdn Property Income |
Cognizant Technology and Abrdn Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and Abrdn Property
The main advantage of trading using opposite Cognizant Technology and Abrdn Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, Abrdn Property 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 Abrdn Property will offset losses from the drop in Abrdn Property'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 |
| Abrdn Property vs. Scandic Hotels Group | Abrdn Property vs. Bytes Technology | Abrdn Property vs. Cognizant Technology Solutions | Abrdn Property vs. SMA Solar Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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