Correlation Between Mind Technology and Cognex
Can any of the company-specific risk be diversified away by investing in both Mind Technology and Cognex 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 Mind Technology and Cognex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mind Technology and Cognex, you can compare the effects of market volatilities on Mind Technology and Cognex 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 Mind Technology with a short position of Cognex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mind Technology and Cognex.
Diversification Opportunities for Mind Technology and Cognex
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mind and Cognex is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology and Cognex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognex and Mind Technology 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 Mind Technology are associated (or correlated) with Cognex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cognex has no effect on the direction of Mind Technology i.e., Mind Technology and Cognex go up and down completely randomly.
Pair Corralation between Mind Technology and Cognex
Given the investment horizon of 90 days Mind Technology is expected to under-perform the Cognex. In addition to that, Mind Technology is 1.19 times more volatile than Cognex. It trades about -0.3 of its total potential returns per unit of risk. Cognex is currently generating about 0.02 per unit of volatility. If you would invest 3,941 in Cognex on July 24, 2024 and sell it today you would earn a total of 22.00 from holding Cognex or generate 0.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Mind Technology vs. Cognex
Performance |
Timeline |
Mind Technology |
Cognex |
Mind Technology and Cognex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mind Technology and Cognex
The main advantage of trading using opposite Mind Technology and Cognex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mind Technology position performs unexpectedly, Cognex 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 Cognex will offset losses from the drop in Cognex's long position.Mind Technology vs. Spectris plc | Mind Technology vs. Electro Sensors | Mind Technology vs. Sono Tek Corp | Mind Technology vs. Vishay Precision Group |
Cognex vs. Nanalysis Scientific Corp | Cognex vs. Genasys | Cognex vs. Kraken Robotics | Cognex vs. Mind Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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