Correlation Between Cognizant Technology and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and Oncimmune Holdings 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 Oncimmune Holdings 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 Oncimmune Holdings plc, you can compare the effects of market volatilities on Cognizant Technology and Oncimmune Holdings 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 Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and Oncimmune Holdings.
Diversification Opportunities for Cognizant Technology and Oncimmune Holdings
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cognizant and Oncimmune is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings 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 Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Cognizant Technology and Oncimmune Holdings
Assuming the 90 days trading horizon Cognizant Technology Solutions is expected to generate 0.23 times more return on investment than Oncimmune Holdings. However, Cognizant Technology Solutions is 4.38 times less risky than Oncimmune Holdings. It trades about 0.11 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about 0.02 per unit of risk. If you would invest 7,109 in Cognizant Technology Solutions on November 3, 2024 and sell it today you would earn a total of 1,196 from holding Cognizant Technology Solutions or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Cognizant Technology |
| Oncimmune Holdings plc |
Cognizant Technology and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and Oncimmune Holdings
The main advantage of trading using opposite Cognizant Technology and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Cognizant Technology vs. Verizon Communications | Cognizant Technology vs. Solstad Offshore ASA | Cognizant Technology vs. Zegona Communications Plc | Cognizant Technology vs. Charter Communications Cl |
| Oncimmune Holdings vs. Livermore Investments Group | Oncimmune Holdings vs. Monks Investment Trust | Oncimmune Holdings vs. Mineral Financial Investments | Oncimmune Holdings vs. Fresenius Medical Care |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |