Correlation Between Cognizant Technology and Sonasoft Corp
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and Sonasoft Corp 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 Sonasoft Corp 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 Sonasoft Corp, you can compare the effects of market volatilities on Cognizant Technology and Sonasoft Corp 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 Sonasoft Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and Sonasoft Corp.
Diversification Opportunities for Cognizant Technology and Sonasoft Corp
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cognizant and Sonasoft is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and Sonasoft Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonasoft 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 Sonasoft Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonasoft Corp has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and Sonasoft Corp go up and down completely randomly.
Pair Corralation between Cognizant Technology and Sonasoft Corp
If you would invest 7,432 in Cognizant Technology Solutions on September 2, 2024 and sell it today you would earn a total of 617.00 from holding Cognizant Technology Solutions or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. Sonasoft Corp
Performance |
| Timeline |
| Cognizant Technology |
| Sonasoft Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cognizant Technology and Sonasoft Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and Sonasoft Corp
The main advantage of trading using opposite Cognizant Technology and Sonasoft Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, Sonasoft Corp 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 Sonasoft Corp will offset losses from the drop in Sonasoft Corp's long position.| Cognizant Technology vs. FiscalNote Holdings | Cognizant Technology vs. Innodata | Cognizant Technology vs. Aurora Innovation | Cognizant Technology vs. Conduent |
| Sonasoft Corp vs. Xalles Holdings | Sonasoft Corp vs. Global Develpmts | Sonasoft Corp vs. High Wire Networks | Sonasoft Corp vs. Alternet Systems |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |