Correlation Between Montage Gold and Cognizant Technology
Can any of the company-specific risk be diversified away by investing in both Montage Gold and Cognizant Technology 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 Montage Gold and Cognizant Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Montage Gold Corp and Cognizant Technology Solutions, you can compare the effects of market volatilities on Montage Gold 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 Montage Gold with a short position of Cognizant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Montage Gold and Cognizant Technology.
Diversification Opportunities for Montage Gold and Cognizant Technology
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Montage and Cognizant is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Montage Gold Corp and Cognizant Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognizant Technology and Montage Gold 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 Montage Gold Corp 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 Montage Gold i.e., Montage Gold and Cognizant Technology go up and down completely randomly.
Pair Corralation between Montage Gold and Cognizant Technology
Assuming the 90 days trading horizon Montage Gold Corp is expected to generate 1.93 times more return on investment than Cognizant Technology. However, Montage Gold is 1.93 times more volatile than Cognizant Technology Solutions. It trades about 0.19 of its potential returns per unit of risk. Cognizant Technology Solutions is currently generating about 0.08 per unit of risk. If you would invest 531.00 in Montage Gold Corp on August 28, 2025 and sell it today you would earn a total of 229.00 from holding Montage Gold Corp or generate 43.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Montage Gold Corp vs. Cognizant Technology Solutions
Performance |
| Timeline |
| Montage Gold Corp |
| Cognizant Technology |
Montage Gold and Cognizant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Montage Gold and Cognizant Technology
The main advantage of trading using opposite Montage Gold and Cognizant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Montage Gold 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.| Montage Gold vs. Arbor Metals Corp | Montage Gold vs. Enduro Metals Corp | Montage Gold vs. Mogotes Metals | Montage Gold vs. Mako Mining Corp |
| Cognizant Technology vs. Pebblebrook Hotel Trust | Cognizant Technology vs. American Hotel Income | Cognizant Technology vs. Choice Hotels International | Cognizant Technology vs. Sunstone Hotel Investors |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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