Cognizant Technology Stock Forecast - Polynomial Regression
| CTSH Stock | USD 67.61 0.07 0.10% |
The Polynomial Regression forecasted value of Cognizant Technology Solutions on the next trading day is expected to be 66.73 with a mean absolute deviation of 0.76 and the sum of the absolute errors of 46.35. Cognizant Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast Cognizant Technology stock prices and determine the direction of Cognizant Technology Solutions's future trends based on various well-known forecasting models. We recommend always using this module together with an analysis of Cognizant Technology's historical fundamentals, such as revenue growth or operating cash flow patterns. Although Cognizant Technology's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of Cognizant Technology's systematic risk associated with finding meaningful patterns of Cognizant Technology fundamentals over time.
Check out Historical Fundamental Analysis of Cognizant Technology to cross-verify your projections. Cognizant |
Open Interest Against 2024-04-19 Cognizant Option Contracts
Although open interest is a measure utilized in the options markets, it could be used to forecast Cognizant Technology's spot prices because the number of available contracts in the market changes daily, and new contracts can be created or liquidated at will. Since open interest in Cognizant Technology's options reflects these daily shifts, investors could use the patterns of these changes to develop long and short-term trading strategies for Cognizant Technology stock based on available contracts left at the end of a trading day.
Please note that to derive more accurate forecasting about market movement from the current Cognizant Technology's open interest, investors have to compare it to Cognizant Technology's spot prices. As Ford's stock price increases, high open interest indicates that money is entering the market, and the market is strongly bullish. Conversely, if the price of Cognizant Technology is decreasing and there is high open interest, that is a sign that the bearish trend will continue, and investors may react by taking short positions in Cognizant. So, decreasing or low open interest during a bull market indicates that investors are becoming uncertain of the depth of the bullish trend, and a reversal in sentiment will likely follow.
Most investors in Cognizant Technology cannot accurately predict what will happen the next trading day because, historically, stock markets tend to be unpredictable and even illogical. Modeling turbulent structures requires applying different statistical methods, techniques, and algorithms to find hidden data structures or patterns within the Cognizant Technology's time series price data and predict how it will affect future prices. One of these methodologies is forecasting, which interprets Cognizant Technology's price structures and extracts relationships that further increase the generated results' accuracy.
Cognizant Technology polinomial regression implements a single variable polynomial regression model using the daily prices as the independent variable. The coefficients of the regression for Cognizant Technology Solutions as well as the accuracy indicators are determined from the period prices. Cognizant Technology Polynomial Regression Price Forecast For the 19th of April
Given 90 days horizon, the Polynomial Regression forecasted value of Cognizant Technology Solutions on the next trading day is expected to be 66.73 with a mean absolute deviation of 0.76, mean absolute percentage error of 1.02, and the sum of the absolute errors of 46.35.Please note that although there have been many attempts to predict Cognizant Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Cognizant Technology's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
Cognizant Technology Stock Forecast Pattern
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Cognizant Technology Forecasted Value
In the context of forecasting Cognizant Technology's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Cognizant Technology's downside and upside margins for the forecasting period are 65.65 and 67.82, respectively. We have considered Cognizant Technology's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the Polynomial Regression forecasting method's relative quality and the estimations of the prediction error of Cognizant Technology stock data series using in forecasting. Note that when a statistical model is used to represent Cognizant Technology stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.| AIC | Akaike Information Criteria | 118.1334 |
| Bias | Arithmetic mean of the errors | None |
| MAD | Mean absolute deviation | 0.7599 |
| MAPE | Mean absolute percentage error | 0.01 |
| SAE | Sum of the absolute errors | 46.3529 |
Predictive Modules for Cognizant Technology
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Cognizant Technology. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cognizant Technology's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Other Forecasting Options for Cognizant Technology
For every potential investor in Cognizant, whether a beginner or expert, Cognizant Technology's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Cognizant Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Cognizant. Basic forecasting techniques help filter out the noise by identifying Cognizant Technology's price trends.Cognizant Technology Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Cognizant Technology stock to make a market-neutral strategy. Peer analysis of Cognizant Technology could also be used in its relative valuation, which is a method of valuing Cognizant Technology by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
Cognizant Technology Technical and Predictive Analytics
The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Cognizant Technology's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Cognizant Technology's current price.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
Cognizant Technology Market Strength Events
Market strength indicators help investors to evaluate how Cognizant Technology stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cognizant Technology shares will generate the highest return on investment. By undertsting and applying Cognizant Technology stock market strength indicators, traders can identify Cognizant Technology Solutions entry and exit signals to maximize returns.
| Daily Balance Of Power | 9.2 T | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 67.61 | |||
| Day Typical Price | 67.61 | |||
| Price Action Indicator | 0.035 | |||
| Period Momentum Indicator | 0.07 |
Cognizant Technology Risk Indicators
The analysis of Cognizant Technology's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Cognizant Technology's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting cognizant stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Mean Deviation | 0.8531 | |||
| Standard Deviation | 1.11 | |||
| Variance | 1.23 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Cognizant Technology Investors Sentiment
The influence of Cognizant Technology's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Cognizant. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Cognizant Technology's public news can be used to forecast risks associated with an investment in Cognizant. The trend in average sentiment can be used to explain how an investor holding Cognizant can time the market purely based on public headlines and social activities around Cognizant Technology Solutions. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Cognizant Technology's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Cognizant Technology's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Cognizant Technology's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Cognizant Technology.
Cognizant Technology Implied Volatility | 140.29 |
Cognizant Technology's implied volatility exposes the market's sentiment of Cognizant Technology Solutions stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cognizant Technology's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cognizant Technology stock will not fluctuate a lot when Cognizant Technology's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Cognizant Technology in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Cognizant Technology's short interest history, or implied volatility extrapolated from Cognizant Technology options trading.
Pair Trading with Cognizant Technology
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cognizant Technology position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with Cognizant Stock
| 0.87 | G | Genpact Limited Sell-off Trend | PairCorr |
| 0.84 | DMRC | Digimarc | PairCorr |
Moving against Cognizant Stock
| 0.63 | FIS | Fidelity National Earnings Call This Week | PairCorr |
| 0.51 | DTST | Data Storage Corp | PairCorr |
| 0.47 | FI | Fiserv Inc Earnings Call This Week | PairCorr |
| 0.44 | WAVD | Wavedancer | PairCorr |
The ability to find closely correlated positions to Cognizant Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cognizant Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cognizant Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cognizant Technology Solutions to buy it.
The correlation of Cognizant Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cognizant Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cognizant Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cognizant Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Historical Fundamental Analysis of Cognizant Technology to cross-verify your projections. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Complementary Tools for Cognizant Stock analysis
When running Cognizant Technology's price analysis, check to measure Cognizant Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cognizant Technology is operating at the current time. Most of Cognizant Technology's value examination focuses on studying past and present price action to predict the probability of Cognizant Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cognizant Technology's price. Additionally, you may evaluate how the addition of Cognizant Technology to your portfolios can decrease your overall portfolio volatility.
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Is Cognizant Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cognizant Technology. If investors know Cognizant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cognizant Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.107 | Dividend Share 1.17 | Earnings Share 4.21 | Revenue Per Share 38.323 | Quarterly Revenue Growth (0.02) |
The market value of Cognizant Technology is measured differently than its book value, which is the value of Cognizant that is recorded on the company's balance sheet. Investors also form their own opinion of Cognizant Technology's value that differs from its market value or its book value, called intrinsic value, which is Cognizant Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cognizant Technology's market value can be influenced by many factors that don't directly affect Cognizant Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cognizant Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cognizant Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognizant Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.