Correlation Between Cognizant Technology and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Cognizant Technology and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and Superior Plus.
Diversification Opportunities for Cognizant Technology and Superior Plus
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cognizant and Superior is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and Superior Plus go up and down completely randomly.
Pair Corralation between Cognizant Technology and Superior Plus
Assuming the 90 days horizon Cognizant Technology Solutions is expected to generate 0.42 times more return on investment than Superior Plus. However, Cognizant Technology Solutions is 2.37 times less risky than Superior Plus. It trades about 0.21 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.01 per unit of risk. If you would invest 6,899 in Cognizant Technology Solutions on August 28, 2024 and sell it today you would earn a total of 705.00 from holding Cognizant Technology Solutions or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. Superior Plus Corp
Performance |
| Timeline |
| Cognizant Technology |
| Superior Plus Corp |
Cognizant Technology and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and Superior Plus
The main advantage of trading using opposite Cognizant Technology and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Cognizant Technology vs. ATRESMEDIA | Cognizant Technology vs. SEI INVESTMENTS | Cognizant Technology vs. REGAL ASIAN INVESTMENTS | Cognizant Technology vs. ANTA SPORTS PRODUCT |
| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |