Correlation Between Cognex and Keyence
Can any of the company-specific risk be diversified away by investing in both Cognex and Keyence 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 Keyence into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognex and Keyence, you can compare the effects of market volatilities on Cognex and Keyence 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 Keyence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognex and Keyence.
Diversification Opportunities for Cognex and Keyence
Very good diversification
The 3 months correlation between Cognex and Keyence is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cognex and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence 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 Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of Cognex i.e., Cognex and Keyence go up and down completely randomly.
Pair Corralation between Cognex and Keyence
Assuming the 90 days horizon Cognex is expected to generate 1.38 times more return on investment than Keyence. However, Cognex is 1.38 times more volatile than Keyence. It trades about 0.19 of its potential returns per unit of risk. Keyence is currently generating about -0.17 per unit of risk. If you would invest 2,304 in Cognex on April 25, 2025 and sell it today you would earn a total of 613.00 from holding Cognex or generate 26.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cognex vs. Keyence
Performance |
Timeline |
Cognex |
Keyence |
Cognex and Keyence Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cognex and Keyence
The main advantage of trading using opposite Cognex and Keyence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognex position performs unexpectedly, Keyence 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 Keyence will offset losses from the drop in Keyence's long position.Cognex vs. Lendlease Group | Cognex vs. Hana Microelectronics PCL | Cognex vs. United Microelectronics Corp | Cognex vs. Arrow Electronics |
Keyence vs. Collins Foods Limited | Keyence vs. CapitaLand Investment Limited | Keyence vs. Virtus Investment Partners | Keyence vs. Cal Maine Foods |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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