Correlation Between Cognex and Cadus
Can any of the company-specific risk be diversified away by investing in both Cognex and Cadus 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 Cognex and Cadus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognex and Cadus, you can compare the effects of market volatilities on Cognex and Cadus 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 Cognex with a short position of Cadus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognex and Cadus.
Diversification Opportunities for Cognex and Cadus
Pay attention - limited upside
The 3 months correlation between Cognex and Cadus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cognex and Cadus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadus and Cognex 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 Cognex are associated (or correlated) with Cadus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadus has no effect on the direction of Cognex i.e., Cognex and Cadus go up and down completely randomly.
Pair Corralation between Cognex and Cadus
If you would invest (100.00) in Cadus on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Cadus or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Cognex vs. Cadus
Performance |
Timeline |
Cognex |
Cadus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cognex and Cadus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cognex and Cadus
The main advantage of trading using opposite Cognex and Cadus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognex position performs unexpectedly, Cadus 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 Cadus will offset losses from the drop in Cadus' long position.The idea behind Cognex and Cadus 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.Cadus vs. Boston Properties | Cadus vs. Mid Atlantic Home Health | Cadus vs. Nexstar Broadcasting Group | Cadus vs. LB Foster |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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