Correlation Between Tecnisa SA and Cogna Educao

Can any of the company-specific risk be diversified away by investing in both Tecnisa SA and Cogna Educao 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 Tecnisa SA and Cogna Educao into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tecnisa SA and Cogna Educao SA, you can compare the effects of market volatilities on Tecnisa SA and Cogna Educao 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 Tecnisa SA with a short position of Cogna Educao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecnisa SA and Cogna Educao.

Diversification Opportunities for Tecnisa SA and Cogna Educao

-0.35

Correlation Coefficient

Tecnisa SA  Cogna Educao

Very good diversification

The 3 months correlation between Tecnisa and Cogna is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tecnisa SA and Cogna Educao SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogna Educao SA and Tecnisa SA 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 Tecnisa SA are associated (or correlated) with Cogna Educao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogna Educao SA has no effect on the direction of Tecnisa SA i.e., Tecnisa SA and Cogna Educao go up and down completely randomly.

Pair Corralation between Tecnisa SA and Cogna Educao

Assuming the 90 days trading horizon Tecnisa SA is expected to generate 2.13 times more return on investment than Cogna Educao. However, Tecnisa SA is 2.13 times more volatile than Cogna Educao SA. It trades about 0.1 of its potential returns per unit of risk. Cogna Educao SA is currently generating about 0.07 per unit of risk. If you would invest  138.00  in Tecnisa SA on April 23, 2025 and sell it today you would earn a total of  42.00  from holding Tecnisa SA or generate 30.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Tecnisa SA  vs.  Cogna Educao SA

Tecnisa SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tecnisa SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Tecnisa SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cogna Educao SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cogna Educao SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cogna Educao may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Tecnisa SA and Cogna Educao

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

The idea behind Tecnisa SA and Cogna Educao SA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.