Correlation Between Cognex and RoboGroup TEK

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Can any of the company-specific risk be diversified away by investing in both Cognex and RoboGroup TEK 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 RoboGroup TEK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognex and RoboGroup TEK, you can compare the effects of market volatilities on Cognex and RoboGroup TEK 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 RoboGroup TEK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognex and RoboGroup TEK.

Diversification Opportunities for Cognex and RoboGroup TEK

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cognex and RoboGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cognex and RoboGroup TEK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoboGroup TEK 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 RoboGroup TEK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoboGroup TEK has no effect on the direction of Cognex i.e., Cognex and RoboGroup TEK go up and down completely randomly.

Pair Corralation between Cognex and RoboGroup TEK

If you would invest  4,791  in Cognex on April 22, 2024 and sell it today you would earn a total of  186.00  from holding Cognex or generate 3.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

Cognex  vs.  RoboGroup TEK

 Performance 
       Timeline  
Cognex 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Cognex are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Cognex showed solid returns over the last few months and may actually be approaching a breakup point.
RoboGroup TEK 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days RoboGroup TEK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, RoboGroup TEK is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Cognex and RoboGroup TEK Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cognex and RoboGroup TEK

The main advantage of trading using opposite Cognex and RoboGroup TEK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognex position performs unexpectedly, RoboGroup TEK 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 RoboGroup TEK will offset losses from the drop in RoboGroup TEK's long position.
The idea behind Cognex and RoboGroup TEK 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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