Correlation Between Cognyte Software and Skycorp Solar

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cognyte Software and Skycorp Solar 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 Skycorp Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognyte Software and Skycorp Solar Group, you can compare the effects of market volatilities on Cognyte Software and Skycorp Solar 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 Skycorp Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognyte Software and Skycorp Solar.

Diversification Opportunities for Cognyte Software and Skycorp Solar

0.04
  Correlation Coefficient

Significant diversification

The 3 months correlation between Cognyte and Skycorp is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cognyte Software and Skycorp Solar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skycorp Solar Group 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 are associated (or correlated) with Skycorp Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skycorp Solar Group has no effect on the direction of Cognyte Software i.e., Cognyte Software and Skycorp Solar go up and down completely randomly.

Pair Corralation between Cognyte Software and Skycorp Solar

Given the investment horizon of 90 days Cognyte Software is expected to generate 0.54 times more return on investment than Skycorp Solar. However, Cognyte Software is 1.84 times less risky than Skycorp Solar. It trades about 0.12 of its potential returns per unit of risk. Skycorp Solar Group is currently generating about -0.04 per unit of risk. If you would invest  846.00  in Cognyte Software on September 13, 2025 and sell it today you would earn a total of  141.00  from holding Cognyte Software or generate 16.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Cognyte Software  vs.  Skycorp Solar Group

 Performance 
       Timeline  
Cognyte Software 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cognyte Software are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Cognyte Software unveiled solid returns over the last few months and may actually be approaching a breakup point.
Skycorp Solar Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Skycorp Solar Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Cognyte Software and Skycorp Solar Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cognyte Software and Skycorp Solar

The main advantage of trading using opposite Cognyte Software and Skycorp Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognyte Software position performs unexpectedly, Skycorp Solar 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 Skycorp Solar will offset losses from the drop in Skycorp Solar's long position.
The idea behind Cognyte Software and Skycorp Solar Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum