Correlation Between DAX Index and Cognex
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Cognex, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Cognex. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Cognex.
Diversification Opportunities for DAX Index and Cognex
Very weak diversification
The 3 months correlation between DAX and Cognex is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Cognex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cognex and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Cognex go up and down completely randomly.
Pair Corralation between DAX Index and Cognex
Assuming the 90 days trading horizon DAX Index is expected to generate 0.33 times more return on investment than Cognex. However, DAX Index is 3.01 times less risky than Cognex. It trades about 0.1 of its potential returns per unit of risk. Cognex is currently generating about 0.03 per unit of risk. If you would invest 1,679,443 in DAX Index on September 4, 2024 and sell it today you would earn a total of 322,232 from holding DAX Index or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Cognex
Performance |
| Timeline |
DAX Index and Cognex Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Cognex
Pair trading matchups for Cognex
Pair Trading with DAX Index and Cognex
The main advantage of trading using opposite DAX Index and Cognex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| Cognex vs. HEXAGON AB ADR1 | Cognex vs. Teledyne Technologies Incorporated | Cognex vs. Trimble | 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |