Correlation Between Amalphi Ag and Cognizant Technology
Can any of the company-specific risk be diversified away by investing in both Amalphi Ag and Cognizant Technology 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 Amalphi Ag and Cognizant Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between amalphi ag and Cognizant Technology Solutions, you can compare the effects of market volatilities on Amalphi Ag and Cognizant Technology 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 Amalphi Ag with a short position of Cognizant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amalphi Ag and Cognizant Technology.
Diversification Opportunities for Amalphi Ag and Cognizant Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amalphi and Cognizant is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding amalphi ag and Cognizant Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognizant Technology and Amalphi Ag 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 amalphi ag are associated (or correlated) with Cognizant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cognizant Technology has no effect on the direction of Amalphi Ag i.e., Amalphi Ag and Cognizant Technology go up and down completely randomly.
Pair Corralation between Amalphi Ag and Cognizant Technology
Assuming the 90 days horizon amalphi ag is expected to generate 8.06 times more return on investment than Cognizant Technology. However, Amalphi Ag is 8.06 times more volatile than Cognizant Technology Solutions. It trades about 0.08 of its potential returns per unit of risk. Cognizant Technology Solutions is currently generating about -0.02 per unit of risk. If you would invest 48.00 in amalphi ag on September 13, 2024 and sell it today you would earn a total of 3.00 from holding amalphi ag or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
amalphi ag vs. Cognizant Technology Solutions
Performance |
| Timeline |
| amalphi ag |
| Cognizant Technology |
Amalphi Ag and Cognizant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amalphi Ag and Cognizant Technology
The main advantage of trading using opposite Amalphi Ag and Cognizant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amalphi Ag position performs unexpectedly, Cognizant Technology 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 Cognizant Technology will offset losses from the drop in Cognizant Technology's long position.| Amalphi Ag vs. MACOM Technology Solutions | Amalphi Ag vs. FANDIFI TECHNOLOGY P | Amalphi Ag vs. Rayonier Advanced Materials | Amalphi Ag vs. Sumitomo Rubber Industries |
| Cognizant Technology vs. Superior Plus Corp | Cognizant Technology vs. SIVERS SEMICONDUCTORS AB | Cognizant Technology vs. Norsk Hydro ASA | Cognizant Technology vs. Reliance Steel Aluminum |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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