Correlation Between COGNYTE SOFTWARE and SIEM OFFSHORE

Can any of the company-specific risk be diversified away by investing in both COGNYTE SOFTWARE and SIEM OFFSHORE 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 SIEM OFFSHORE 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 SIEM OFFSHORE NEW, you can compare the effects of market volatilities on COGNYTE SOFTWARE and SIEM OFFSHORE 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 SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of COGNYTE SOFTWARE and SIEM OFFSHORE.

Diversification Opportunities for COGNYTE SOFTWARE and SIEM OFFSHORE

-0.2

Correlation Coefficient

COGNYTE SOFTWARE  SIEM OFFSHORE

Good diversification

The 3 months correlation between COGNYTE and SIEM is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding COGNYTE SOFTWARE LTD and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of COGNYTE SOFTWARE i.e., COGNYTE SOFTWARE and SIEM OFFSHORE go up and down completely randomly.

Pair Corralation between COGNYTE SOFTWARE and SIEM OFFSHORE

Assuming the 90 days horizon COGNYTE SOFTWARE LTD is expected to under-perform the SIEM OFFSHORE. In addition to that, COGNYTE SOFTWARE is 1.07 times more volatile than SIEM OFFSHORE NEW. It trades about 0.0 of its total potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about 0.23 per unit of volatility. If you would invest  145.00  in SIEM OFFSHORE NEW on April 20, 2025 and sell it today you would earn a total of  74.00  from holding SIEM OFFSHORE NEW or generate 51.03% 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.  SIEM OFFSHORE NEW

COGNYTE SOFTWARE LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days COGNYTE SOFTWARE LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, COGNYTE SOFTWARE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SIEM OFFSHORE NEW

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SIEM OFFSHORE NEW are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical indicators, SIEM OFFSHORE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COGNYTE SOFTWARE and SIEM OFFSHORE

The main advantage of trading using opposite COGNYTE SOFTWARE and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COGNYTE SOFTWARE position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.

The idea behind COGNYTE SOFTWARE LTD and SIEM OFFSHORE NEW 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.

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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.