Correlation Between COGNYTE SOFTWARE and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both COGNYTE SOFTWARE and ARDAGH METAL 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 COGNYTE SOFTWARE and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COGNYTE SOFTWARE LTD and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on COGNYTE SOFTWARE and ARDAGH METAL 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 COGNYTE SOFTWARE with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COGNYTE SOFTWARE and ARDAGH METAL.
Diversification Opportunities for COGNYTE SOFTWARE and ARDAGH METAL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COGNYTE and ARDAGH is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding COGNYTE SOFTWARE LTD and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL and COGNYTE SOFTWARE 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 COGNYTE SOFTWARE LTD are associated (or correlated) with ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of COGNYTE SOFTWARE i.e., COGNYTE SOFTWARE and ARDAGH METAL go up and down completely randomly.
Pair Corralation between COGNYTE SOFTWARE and ARDAGH METAL
Assuming the 90 days horizon COGNYTE SOFTWARE LTD is expected to generate 3.54 times more return on investment than ARDAGH METAL. However, COGNYTE SOFTWARE is 3.54 times more volatile than ARDAGH METAL PACDL 0001. It trades about 0.04 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about 0.03 per unit of risk. If you would invest 394.00 in COGNYTE SOFTWARE LTD on September 11, 2025 and sell it today you would earn a total of 331.00 from holding COGNYTE SOFTWARE LTD or generate 84.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COGNYTE SOFTWARE LTD vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| COGNYTE SOFTWARE LTD |
| ARDAGH METAL PACDL |
COGNYTE SOFTWARE and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COGNYTE SOFTWARE and ARDAGH METAL
The main advantage of trading using opposite COGNYTE SOFTWARE and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COGNYTE SOFTWARE position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| COGNYTE SOFTWARE vs. NMI Holdings | COGNYTE SOFTWARE vs. Origin Agritech | COGNYTE SOFTWARE vs. SIVERS SEMICONDUCTORS AB | COGNYTE SOFTWARE vs. Intel |
| ARDAGH METAL vs. Packaging of | ARDAGH METAL vs. Smurfit Kappa Group | ARDAGH METAL vs. NMI Holdings | ARDAGH METAL vs. Origin Agritech |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |