Correlation Between Cognizant Technology and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and OneSavings Bank 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 OneSavings Bank 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 OneSavings Bank PLC, you can compare the effects of market volatilities on Cognizant Technology and OneSavings Bank 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 OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and OneSavings Bank.
Diversification Opportunities for Cognizant Technology and OneSavings Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cognizant and OneSavings is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and OneSavings Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSavings Bank 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 OneSavings Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSavings Bank PLC has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and OneSavings Bank go up and down completely randomly.
Pair Corralation between Cognizant Technology and OneSavings Bank
Assuming the 90 days trading horizon Cognizant Technology Solutions is expected to generate 0.53 times more return on investment than OneSavings Bank. However, Cognizant Technology Solutions is 1.89 times less risky than OneSavings Bank. It trades about 0.06 of its potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.02 per unit of risk. If you would invest 5,316 in Cognizant Technology Solutions on September 12, 2024 and sell it today you would earn a total of 2,733 from holding Cognizant Technology Solutions or generate 51.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. OneSavings Bank PLC
Performance |
| Timeline |
| Cognizant Technology |
| OneSavings Bank PLC |
Cognizant Technology and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and OneSavings Bank
The main advantage of trading using opposite Cognizant Technology and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, OneSavings Bank 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 OneSavings Bank will offset losses from the drop in OneSavings Bank'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 |
| OneSavings Bank vs. Alior Bank SA | OneSavings Bank vs. National Bank of | OneSavings Bank vs. DXC Technology Co | OneSavings Bank vs. Check Point Software |
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.
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