Correlation Between Vishay Intertechnology and Peijia Medical
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Peijia Medical 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 Vishay Intertechnology and Peijia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Peijia Medical Limited, you can compare the effects of market volatilities on Vishay Intertechnology and Peijia Medical 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 Vishay Intertechnology with a short position of Peijia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Peijia Medical.
Diversification Opportunities for Vishay Intertechnology and Peijia Medical
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vishay and Peijia is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Peijia Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peijia Medical and Vishay Intertechnology 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 Vishay Intertechnology are associated (or correlated) with Peijia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peijia Medical has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Peijia Medical go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Peijia Medical
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 0.93 times more return on investment than Peijia Medical. However, Vishay Intertechnology is 1.07 times less risky than Peijia Medical. It trades about -0.05 of its potential returns per unit of risk. Peijia Medical Limited is currently generating about -0.18 per unit of risk. If you would invest 1,651 in Vishay Intertechnology on November 5, 2024 and sell it today you would lose (44.00) from holding Vishay Intertechnology or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Peijia Medical Limited
Performance |
| Timeline |
| Vishay Intertechnology |
| Peijia Medical |
Vishay Intertechnology and Peijia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Peijia Medical
The main advantage of trading using opposite Vishay Intertechnology and Peijia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Peijia Medical 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 Peijia Medical will offset losses from the drop in Peijia Medical's long position.| Vishay Intertechnology vs. SILVER BULLET DATA | Vishay Intertechnology vs. Linedata Services SA | Vishay Intertechnology vs. Hyatt Hotels | Vishay Intertechnology vs. Park Hotels Resorts |
| Peijia Medical vs. AGNC INVESTMENT | Peijia Medical vs. WisdomTree Investments | Peijia Medical vs. HK Electric Investments | Peijia Medical vs. Moneysupermarket Group PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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