Correlation Between Cognizant Technology and Thermo Fisher
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and Thermo Fisher 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 Thermo Fisher 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 Thermo Fisher Scientific, you can compare the effects of market volatilities on Cognizant Technology and Thermo Fisher 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 Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and Thermo Fisher.
Diversification Opportunities for Cognizant Technology and Thermo Fisher
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cognizant and Thermo is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific 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 Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and Thermo Fisher go up and down completely randomly.
Pair Corralation between Cognizant Technology and Thermo Fisher
If you would invest 1,052,243 in Thermo Fisher Scientific on September 25, 2024 and sell it today you would earn a total of 8,757 from holding Thermo Fisher Scientific or generate 0.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Cognizant Technology Solutions vs. Thermo Fisher Scientific
Performance |
Timeline |
Cognizant Technology |
Thermo Fisher Scientific |
Cognizant Technology and Thermo Fisher Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cognizant Technology and Thermo Fisher
The main advantage of trading using opposite Cognizant Technology and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher's long position.Cognizant Technology vs. Grupo Sports World | Cognizant Technology vs. Lloyds Banking Group | Cognizant Technology vs. Micron Technology | Cognizant Technology vs. United Airlines Holdings |
Thermo Fisher vs. McEwen Mining | Thermo Fisher vs. Verizon Communications | Thermo Fisher vs. Taiwan Semiconductor Manufacturing | Thermo Fisher vs. Micron Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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