Correlation Between FIBRA Storage and Cognizant Technology
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By analyzing existing cross correlation between FIBRA Storage and Cognizant Technology Solutions, you can compare the effects of market volatilities on FIBRA Storage 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 FIBRA Storage with a short position of Cognizant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIBRA Storage and Cognizant Technology.
Diversification Opportunities for FIBRA Storage and Cognizant Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIBRA and Cognizant is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding FIBRA Storage and Cognizant Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognizant Technology and FIBRA Storage 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 FIBRA Storage 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 FIBRA Storage i.e., FIBRA Storage and Cognizant Technology go up and down completely randomly.
Pair Corralation between FIBRA Storage and Cognizant Technology
Assuming the 90 days trading horizon FIBRA Storage is expected to generate 5.47 times less return on investment than Cognizant Technology. In addition to that, FIBRA Storage is 1.04 times more volatile than Cognizant Technology Solutions. It trades about 0.01 of its total potential returns per unit of risk. Cognizant Technology Solutions is currently generating about 0.07 per unit of volatility. If you would invest 108,763 in Cognizant Technology Solutions on August 28, 2024 and sell it today you would earn a total of 31,237 from holding Cognizant Technology Solutions or generate 28.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIBRA Storage vs. Cognizant Technology Solutions
Performance |
| Timeline |
| FIBRA Storage |
| Cognizant Technology |
FIBRA Storage and Cognizant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIBRA Storage and Cognizant Technology
The main advantage of trading using opposite FIBRA Storage and Cognizant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIBRA Storage 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.| FIBRA Storage vs. Genworth Financial | FIBRA Storage vs. Verizon Communications | FIBRA Storage vs. GMxico Transportes SAB | FIBRA Storage vs. Lloyds Banking Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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