Correlation Between ITALIAN WINE and Cognizant Technology
Can any of the company-specific risk be diversified away by investing in both ITALIAN WINE 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 ITALIAN WINE and Cognizant Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITALIAN WINE BRANDS and Cognizant Technology Solutions, you can compare the effects of market volatilities on ITALIAN WINE 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 ITALIAN WINE with a short position of Cognizant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITALIAN WINE and Cognizant Technology.
Diversification Opportunities for ITALIAN WINE and Cognizant Technology
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ITALIAN and Cognizant is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding ITALIAN WINE BRANDS and Cognizant Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognizant Technology and ITALIAN WINE 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 ITALIAN WINE BRANDS 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 ITALIAN WINE i.e., ITALIAN WINE and Cognizant Technology go up and down completely randomly.
Pair Corralation between ITALIAN WINE and Cognizant Technology
Assuming the 90 days horizon ITALIAN WINE BRANDS is expected to under-perform the Cognizant Technology. But the stock apears to be less risky and, when comparing its historical volatility, ITALIAN WINE BRANDS is 1.81 times less risky than Cognizant Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Cognizant Technology Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,864 in Cognizant Technology Solutions on September 11, 2025 and sell it today you would earn a total of 1,046 from holding Cognizant Technology Solutions or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITALIAN WINE BRANDS vs. Cognizant Technology Solutions
Performance |
| Timeline |
| ITALIAN WINE BRANDS |
| Cognizant Technology |
ITALIAN WINE and Cognizant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITALIAN WINE and Cognizant Technology
The main advantage of trading using opposite ITALIAN WINE and Cognizant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITALIAN WINE 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.| ITALIAN WINE vs. NAKED WINES PLC | ITALIAN WINE vs. CHINA TONTINE WINES | ITALIAN WINE vs. NMI Holdings | ITALIAN WINE vs. Origin Agritech |
| Cognizant Technology vs. Accenture plc | Cognizant Technology vs. Amadeus IT Group | Cognizant Technology vs. CDW Corporation |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |