Correlation Between Cognex and Vishay Precision
Can any of the company-specific risk be diversified away by investing in both Cognex and Vishay Precision 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 Vishay Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognex and Vishay Precision Group, you can compare the effects of market volatilities on Cognex and Vishay Precision 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 Vishay Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognex and Vishay Precision.
Diversification Opportunities for Cognex and Vishay Precision
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cognex and Vishay is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cognex and Vishay Precision Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Precision 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 Vishay Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vishay Precision has no effect on the direction of Cognex i.e., Cognex and Vishay Precision go up and down completely randomly.
Pair Corralation between Cognex and Vishay Precision
Given the investment horizon of 90 days Cognex is expected to generate 0.88 times more return on investment than Vishay Precision. However, Cognex is 1.14 times less risky than Vishay Precision. It trades about 0.33 of its potential returns per unit of risk. Vishay Precision Group is currently generating about 0.04 per unit of risk. If you would invest 3,570 in Cognex on November 2, 2024 and sell it today you would earn a total of 402.00 from holding Cognex or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cognex vs. Vishay Precision Group
Performance |
| Timeline |
| Cognex |
| Vishay Precision |
Cognex and Vishay Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognex and Vishay Precision
The main advantage of trading using opposite Cognex and Vishay Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognex position performs unexpectedly, Vishay Precision 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 Vishay Precision will offset losses from the drop in Vishay Precision's long position.| Cognex vs. Vontier Corp | Cognex vs. Teledyne Technologies Incorporated | Cognex vs. ESCO Technologies | Cognex vs. MKS Instruments |
| Vishay Precision vs. ESCO Technologies | Vishay Precision vs. Genasys | Vishay Precision vs. Know Labs | Vishay Precision vs. Mesa Laboratories |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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