Correlation Between Stratasys and Vishay Intertechnology
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and Vishay Intertechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Vishay Intertechnology, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of Vishay Intertechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Vishay Intertechnology.
Diversification Opportunities for Stratasys and Vishay Intertechnology
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stratasys and Vishay is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology and Stratasys 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 Stratasys 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 Stratasys i.e., Stratasys and Vishay Intertechnology go up and down completely randomly.
Pair Corralation between Stratasys and Vishay Intertechnology
Given the investment horizon of 90 days Stratasys is expected to generate 1.85 times more return on investment than Vishay Intertechnology. However, Stratasys is 1.85 times more volatile than Vishay Intertechnology. It trades about 0.02 of its potential returns per unit of risk. Vishay Intertechnology is currently generating about -0.15 per unit of risk. If you would invest 914.00 in Stratasys on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Stratasys or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Vishay Intertechnology
Performance |
| Timeline |
| Stratasys |
| Vishay Intertechnology |
Stratasys and Vishay Intertechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Vishay Intertechnology
The main advantage of trading using opposite Stratasys and Vishay Intertechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. Nano Dimension | Stratasys vs. IONQ Inc | Stratasys vs. D Wave Quantum | Stratasys vs. Desktop Metal |
| Vishay Intertechnology vs. Silicon Laboratories | Vishay Intertechnology vs. Diodes Incorporated | Vishay Intertechnology vs. MACOM Technology Solutions | Vishay Intertechnology vs. FormFactor |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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