Correlation Between Alpha Cognition and Cadence Bank

Can any of the company-specific risk be diversified away by investing in both Alpha Cognition and Cadence Bank 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 Alpha Cognition and Cadence Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Alpha Cognition and Cadence Bank

0.52

Correlation Coefficient

Alpha Cognition  Cadence Bank

Very weak diversification

The 3 months correlation between Alpha and Cadence is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Cognition and Cadence Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadence Bank and Alpha Cognition 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 Alpha Cognition are associated (or correlated) with Cadence Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadence Bank has no effect on the direction of Alpha Cognition i.e., Alpha Cognition and Cadence Bank go up and down completely randomly.

Pair Corralation between Alpha Cognition and Cadence Bank

Given the investment horizon of 90 days Alpha Cognition is expected to under-perform the Cadence Bank. In addition to that, Alpha Cognition is 5.55 times more volatile than Cadence Bank. It trades about -0.14 of its total potential returns per unit of risk. Cadence Bank is currently generating about 0.0 per unit of volatility. If you would invest  2,153  in Cadence Bank on September 9, 2025 and sell it today you would lose (2.00) from holding Cadence Bank or give up 0.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Alpha Cognition  vs.  Cadence Bank

Alpha Cognition

Risk-Adjusted Performance

Weakest

Over the last 90 days Alpha Cognition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Cadence Bank

Risk-Adjusted Performance

Weak

Over the last 90 days Cadence Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Cadence Bank is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Alpha Cognition and Cadence Bank

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

The idea behind Alpha Cognition and Cadence Bank 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.