Correlation Between Cornerstone Strategic and Amdocs

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

By analyzing existing cross correlation between Cornerstone Strategic Value and Amdocs Limited, you can compare the effects of market volatilities on Cornerstone Strategic and Amdocs 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 Cornerstone Strategic with a short position of Amdocs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Amdocs.

Diversification Opportunities for Cornerstone Strategic and Amdocs

-0.24

Correlation Coefficient

Cornerstone Strategic  Amdocs

Very good diversification

The 3 months correlation between Cornerstone and Amdocs is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value and Amdocs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amdocs Limited and Cornerstone Strategic 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 Cornerstone Strategic Value are associated (or correlated) with Amdocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amdocs Limited has no effect on the direction of Cornerstone Strategic i.e., Cornerstone Strategic and Amdocs go up and down completely randomly.

Pair Corralation between Cornerstone Strategic and Amdocs

Considering the 90-day investment horizon Cornerstone Strategic Value is expected to generate 0.82 times more return on investment than Amdocs. However, Cornerstone Strategic Value is 1.22 times less risky than Amdocs. It trades about 0.37 of its potential returns per unit of risk. Amdocs Limited is currently generating about 0.01 per unit of risk. If you would invest  662.00  in Cornerstone Strategic Value on April 28, 2025 and sell it today you would earn a total of  153.00  from holding Cornerstone Strategic Value or generate 23.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Cornerstone Strategic Value  vs.  Amdocs Limited

Cornerstone Strategic

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak essential indicators, Cornerstone Strategic displayed solid returns over the last few months and may actually be approaching a breakup point.

Amdocs Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amdocs Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Amdocs is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cornerstone Strategic and Amdocs

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

The idea behind Cornerstone Strategic Value and Amdocs Limited 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.