Correlation Between Cognizant Technology and Bemobi Mobile
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and Bemobi Mobile 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 Bemobi Mobile 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 Bemobi Mobile Tech, you can compare the effects of market volatilities on Cognizant Technology and Bemobi Mobile 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 Bemobi Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and Bemobi Mobile.
Diversification Opportunities for Cognizant Technology and Bemobi Mobile
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cognizant and Bemobi is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and Bemobi Mobile Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bemobi Mobile Tech 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 Bemobi Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bemobi Mobile Tech has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and Bemobi Mobile go up and down completely randomly.
Pair Corralation between Cognizant Technology and Bemobi Mobile
Assuming the 90 days trading horizon Cognizant Technology is expected to generate 1.08 times less return on investment than Bemobi Mobile. But when comparing it to its historical volatility, Cognizant Technology Solutions is 1.39 times less risky than Bemobi Mobile. It trades about 0.07 of its potential returns per unit of risk. Bemobi Mobile Tech is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,223 in Bemobi Mobile Tech on August 28, 2024 and sell it today you would earn a total of 231.00 from holding Bemobi Mobile Tech or generate 18.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.86% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. Bemobi Mobile Tech
Performance |
| Timeline |
| Cognizant Technology |
| Bemobi Mobile Tech |
Cognizant Technology and Bemobi Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and Bemobi Mobile
The main advantage of trading using opposite Cognizant Technology and Bemobi Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, Bemobi Mobile 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 Bemobi Mobile will offset losses from the drop in Bemobi Mobile's long position.| Cognizant Technology vs. Fras le SA | Cognizant Technology vs. Clave Indices De | Cognizant Technology vs. BTG Pactual Logstica | Cognizant Technology vs. Telefonaktiebolaget LM Ericsson |
| Bemobi Mobile vs. Charter Communications | Bemobi Mobile vs. Fras le SA | Bemobi Mobile vs. Clave Indices De | Bemobi Mobile vs. BTG Pactual Logstica |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |