Correlation Between Greenroc Mining and Cognizant Technology
Can any of the company-specific risk be diversified away by investing in both Greenroc Mining 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 Greenroc Mining and Cognizant Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenroc Mining PLC and Cognizant Technology Solutions, you can compare the effects of market volatilities on Greenroc Mining 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 Greenroc Mining with a short position of Cognizant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and Cognizant Technology.
Diversification Opportunities for Greenroc Mining and Cognizant Technology
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greenroc and Cognizant is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and Cognizant Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognizant Technology and Greenroc Mining 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 Greenroc Mining PLC 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 Greenroc Mining i.e., Greenroc Mining and Cognizant Technology go up and down completely randomly.
Pair Corralation between Greenroc Mining and Cognizant Technology
Assuming the 90 days trading horizon Greenroc Mining PLC is expected to under-perform the Cognizant Technology. In addition to that, Greenroc Mining is 2.49 times more volatile than Cognizant Technology Solutions. It trades about -0.04 of its total potential returns per unit of risk. Cognizant Technology Solutions is currently generating about 0.19 per unit of volatility. If you would invest 7,479 in Cognizant Technology Solutions on August 29, 2024 and sell it today you would earn a total of 588.00 from holding Cognizant Technology Solutions or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Greenroc Mining PLC vs. Cognizant Technology Solutions
Performance |
| Timeline |
| Greenroc Mining PLC |
| Cognizant Technology |
Greenroc Mining and Cognizant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and Cognizant Technology
The main advantage of trading using opposite Greenroc Mining and Cognizant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc Mining 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.| Greenroc Mining vs. Atalaya Mining | Greenroc Mining vs. Anglo Asian Mining | Greenroc Mining vs. Metals Exploration Plc |
| Cognizant Technology vs. Lendinvest PLC | Cognizant Technology vs. Neometals | Cognizant Technology vs. Coor Service Management | Cognizant Technology vs. Albion Technology General |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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