CTSH vs EPAM: Correlation
Measured on weekly returns over the past three years, Cognizant (CTSH) and EPAM Systems, Inc. (EPAM) carry a correlation of 0.70, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CTSH and EPAM?
On 3 years of weekly data the CTSH/EPAM correlation comes out at 0.70, strong. Little has changed lately, as the 1-year reading of 0.77 lands near the 3-year figure. The 5-year figure is 0.51, and annualized covariance runs at 1060.5 %².
In CTSH's tracked universe of 44 assets, EPAM sits right near the top at #3. Their recent paths diverged sharply: over the last 12 months CTSH outperformed by 25.2 percentage points (-9.8% for CTSH against -35.0% for EPAM).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CTSH vs EPAM: side by side
| CTSH (Cognizant) | EPAM (EPAM Systems, Inc.) | |
|---|---|---|
| 1-year return | -9.8% | -35.0% |
| 5-year return | -9.6% | -82.3% |
| Volatility (ann.) | 32.3% | 47.0% |
| Beta vs S&P 500 | 0.89 | 0.98 |
| Max drawdown (3Y) | -56.1% | -75.8% |
| Market cap | $28.7B | $5.8B |
| P/E (trailing) | 13.3 | 14.8 |
| Dividend yield | 2.09% | 0.00% |
| Sector / category | Information Technology | US Listed |
Year-by-year returns
| Year | CTSH | EPAM |
|---|---|---|
| 2022 | -34.5% | -51.0% |
| 2023 | +34.4% | -9.3% |
| 2024 | +3.5% | -21.4% |
| 2025 | +9.7% | -12.4% |
| 2026 | -21.8% | -45.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CTSH and EPAM good diversifiers for each other?
Only partially. A correlation of 0.70 means CTSH and EPAM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CTSH and EPAM?
Using weekly returns as of 2026-08-27: 0.70 over 3 years, with 0.77 over the last year and 0.51 over 5 years.
Is EPAM a good diversifier for CTSH?
Only partially. A correlation of 0.70 means CTSH and EPAM share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.70 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: CTSH correlations · EPAM correlations
