Correlation Between Cognyte Software and Westpac Banking
Can any of the company-specific risk be diversified away by investing in both Cognyte Software and Westpac Banking 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 Westpac Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognyte Software and Westpac Banking, you can compare the effects of market volatilities on Cognyte Software and Westpac Banking 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 Westpac Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognyte Software and Westpac Banking.
Diversification Opportunities for Cognyte Software and Westpac Banking
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cognyte and Westpac is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cognyte Software and Westpac Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westpac Banking 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 Westpac Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westpac Banking has no effect on the direction of Cognyte Software i.e., Cognyte Software and Westpac Banking go up and down completely randomly.
Pair Corralation between Cognyte Software and Westpac Banking
Given the investment horizon of 90 days Cognyte Software is expected to under-perform the Westpac Banking. But the stock apears to be less risky and, when comparing its historical volatility, Cognyte Software is 1.18 times less risky than Westpac Banking. The stock trades about -0.03 of its potential returns per unit of risk. The Westpac Banking is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,398 in Westpac Banking on September 2, 2025 and sell it today you would earn a total of 92.00 from holding Westpac Banking or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Cognyte Software vs. Westpac Banking
Performance |
| Timeline |
| Cognyte Software |
| Westpac Banking |
Cognyte Software and Westpac Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognyte Software and Westpac Banking
The main advantage of trading using opposite Cognyte Software and Westpac Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognyte Software position performs unexpectedly, Westpac Banking 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 Westpac Banking will offset losses from the drop in Westpac Banking's long position.| Cognyte Software vs. Amexdrug | Cognyte Software vs. Globe Trade Centre | Cognyte Software vs. Chemtrade Logistics Income | Cognyte Software vs. ProUroCare Medical |
| Westpac Banking vs. Haier Smart Home | Westpac Banking vs. Eddy Smart Home | Westpac Banking vs. LGI Homes | Westpac Banking vs. Fortress Transportation and |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |