Correlation Between Cass Information and Vishay Intertechnology
Can any of the company-specific risk be diversified away by investing in both Cass Information and Vishay Intertechnology 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 Cass Information and Vishay Intertechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and Vishay Intertechnology, you can compare the effects of market volatilities on Cass Information and Vishay Intertechnology 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 Cass Information with a short position of Vishay Intertechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and Vishay Intertechnology.
Diversification Opportunities for Cass Information and Vishay Intertechnology
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cass and Vishay is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology and Cass Information 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 Cass Information Systems are associated (or correlated) with Vishay Intertechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vishay Intertechnology has no effect on the direction of Cass Information i.e., Cass Information and Vishay Intertechnology go up and down completely randomly.
Pair Corralation between Cass Information and Vishay Intertechnology
Assuming the 90 days horizon Cass Information Systems is expected to generate 0.93 times more return on investment than Vishay Intertechnology. However, Cass Information Systems is 1.07 times less risky than Vishay Intertechnology. It trades about 0.01 of its potential returns per unit of risk. Vishay Intertechnology is currently generating about -0.01 per unit of risk. If you would invest 4,273 in Cass Information Systems on September 3, 2024 and sell it today you would lose (73.00) from holding Cass Information Systems or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. Vishay Intertechnology
Performance |
| Timeline |
| Cass Information Systems |
| Vishay Intertechnology |
Cass Information and Vishay Intertechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and Vishay Intertechnology
The main advantage of trading using opposite Cass Information and Vishay Intertechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, Vishay Intertechnology 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 Intertechnology will offset losses from the drop in Vishay Intertechnology's long position.| Cass Information vs. Align Technology | Cass Information vs. X FAB Silicon Foundries | Cass Information vs. SMA Solar Technology | Cass Information vs. Casio Computer CoLtd |
| Vishay Intertechnology vs. ALTAIR RES INC | Vishay Intertechnology vs. NORWEGIAN AIR SHUT | Vishay Intertechnology vs. Pentair plc | Vishay Intertechnology vs. Evolution Mining Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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