Correlation Between Cognex and Energy Today
Can any of the company-specific risk be diversified away by investing in both Cognex and Energy Today 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 Energy Today into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognex and Energy Today, you can compare the effects of market volatilities on Cognex and Energy Today 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 Energy Today. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognex and Energy Today.
Diversification Opportunities for Cognex and Energy Today
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cognex and Energy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cognex and Energy Today in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Today 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 Energy Today. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Today has no effect on the direction of Cognex i.e., Cognex and Energy Today go up and down completely randomly.
Pair Corralation between Cognex and Energy Today
If you would invest 3,770 in Cognex on January 26, 2024 and sell it today you would earn a total of 183.00 from holding Cognex or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cognex vs. Energy Today
Performance |
| Timeline |
| Cognex |
| Energy Today |
Cognex and Energy Today Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognex and Energy Today
The main advantage of trading using opposite Cognex and Energy Today positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognex position performs unexpectedly, Energy Today 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 Energy Today will offset losses from the drop in Energy Today's long position.| Cognex vs. ESCO Technologies | Cognex vs. Mesa Laboratories | Cognex vs. Vishay Precision Group | Cognex vs. Sensata Technologies Holding |
| Energy Today vs. Cracker Barrel Old | Energy Today vs. BlueScope Steel Limited | Energy Today vs. American Environmental | Energy Today vs. El Pollo Loco |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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