Correlation Between Cognizant Technology and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and Grand Vision 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 Grand Vision 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 Grand Vision Media, you can compare the effects of market volatilities on Cognizant Technology and Grand Vision 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 Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and Grand Vision.
Diversification Opportunities for Cognizant Technology and Grand Vision
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cognizant and Grand is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media 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 Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and Grand Vision go up and down completely randomly.
Pair Corralation between Cognizant Technology and Grand Vision
Assuming the 90 days trading horizon Cognizant Technology is expected to generate 22.68 times less return on investment than Grand Vision. But when comparing it to its historical volatility, Cognizant Technology Solutions is 24.78 times less risky than Grand Vision. It trades about 0.06 of its potential returns per unit of risk. Grand Vision Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Grand Vision Media on September 14, 2024 and sell it today you would earn a total of 78.00 from holding Grand Vision Media or generate 390.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. Grand Vision Media
Performance |
| Timeline |
| Cognizant Technology |
| Grand Vision Media |
Cognizant Technology and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and Grand Vision
The main advantage of trading using opposite Cognizant Technology and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.| Cognizant Technology vs. Zoom Video Communications | Cognizant Technology vs. Zegona Communications Plc | Cognizant Technology vs. AMG Advanced Metallurgical | Cognizant Technology vs. Empire Metals Limited |
| Grand Vision vs. Foresight Environmental Infrastructure | Grand Vision vs. Axfood AB | Grand Vision vs. Roebuck Food Group | Grand Vision vs. Austevoll Seafood ASA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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