Correlation Between Sabra Health and Vishay Intertechnology
Can any of the company-specific risk be diversified away by investing in both Sabra Health 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 Sabra Health and Vishay Intertechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabra Health Care and Vishay Intertechnology, you can compare the effects of market volatilities on Sabra Health 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 Sabra Health with a short position of Vishay Intertechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabra Health and Vishay Intertechnology.
Diversification Opportunities for Sabra Health and Vishay Intertechnology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabra and Vishay is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Health Care and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology and Sabra Health 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 Sabra Health Care 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 Sabra Health i.e., Sabra Health and Vishay Intertechnology go up and down completely randomly.
Pair Corralation between Sabra Health and Vishay Intertechnology
Assuming the 90 days horizon Sabra Health Care is expected to under-perform the Vishay Intertechnology. But the stock apears to be less risky and, when comparing its historical volatility, Sabra Health Care is 2.73 times less risky than Vishay Intertechnology. The stock trades about -0.26 of its potential returns per unit of risk. The Vishay Intertechnology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,468 in Vishay Intertechnology on September 22, 2024 and sell it today you would earn a total of 191.00 from holding Vishay Intertechnology or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabra Health Care vs. Vishay Intertechnology
Performance |
| Timeline |
| Sabra Health Care |
| Vishay Intertechnology |
Sabra Health and Vishay Intertechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabra Health and Vishay Intertechnology
The main advantage of trading using opposite Sabra Health and Vishay Intertechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabra Health 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.| Sabra Health vs. Welltower | Sabra Health vs. Superior Plus Corp | Sabra Health vs. NMI Holdings | Sabra Health vs. SIVERS SEMICONDUCTORS AB |
| Vishay Intertechnology vs. ADRIATIC METALS LS 013355 | Vishay Intertechnology vs. GREENX METALS LTD | Vishay Intertechnology vs. Harmony Gold Mining | Vishay Intertechnology vs. AXWAY SOFTWARE EO |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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