Correlation Between AERWINS Technologies and Cognex
Can any of the company-specific risk be diversified away by investing in both AERWINS Technologies 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 AERWINS Technologies and Cognex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AERWINS Technologies and Cognex, you can compare the effects of market volatilities on AERWINS Technologies 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 AERWINS Technologies with a short position of Cognex. Check out your portfolio center. Please also check ongoing floating volatility patterns of AERWINS Technologies and Cognex.
Diversification Opportunities for AERWINS Technologies and Cognex
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between AERWINS and Cognex is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AERWINS Technologies and Cognex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognex and AERWINS Technologies 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 AERWINS Technologies 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 AERWINS Technologies i.e., AERWINS Technologies and Cognex go up and down completely randomly.
Pair Corralation between AERWINS Technologies and Cognex
Given the investment horizon of 90 days AERWINS Technologies is expected to under-perform the Cognex. In addition to that, AERWINS Technologies is 5.16 times more volatile than Cognex. It trades about -0.65 of its total potential returns per unit of risk. Cognex is currently generating about -0.01 per unit of volatility. If you would invest 4,529 in Cognex on August 28, 2024 and sell it today you would lose (376.00) from holding Cognex or give up 8.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.49% |
| Values | Daily Returns |
AERWINS Technologies vs. Cognex
Performance |
| Timeline |
| AERWINS Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cognex |
AERWINS Technologies and Cognex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AERWINS Technologies and Cognex
The main advantage of trading using opposite AERWINS Technologies and Cognex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AERWINS Technologies 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.| AERWINS Technologies vs. Scientific Industries | AERWINS Technologies vs. Nanalysis Scientific Corp | AERWINS Technologies vs. DSG Global | AERWINS Technologies vs. Focus Universal |
| Cognex vs. Vontier Corp | Cognex vs. Teledyne Technologies Incorporated | Cognex vs. ESCO Technologies | Cognex vs. MKS Instruments |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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