Correlation Between Vishay Intertechnology and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Apollo Investment 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 Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Apollo Investment Corp, you can compare the effects of market volatilities on Vishay Intertechnology and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Apollo Investment.
Diversification Opportunities for Vishay Intertechnology and Apollo Investment
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and Apollo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Apollo Investment go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Apollo Investment
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 3.0 times more return on investment than Apollo Investment. However, Vishay Intertechnology is 3.0 times more volatile than Apollo Investment Corp. It trades about 0.16 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.26 per unit of risk. If you would invest 1,618 in Vishay Intertechnology on August 31, 2024 and sell it today you would earn a total of 205.00 from holding Vishay Intertechnology or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Apollo Investment Corp
Performance |
| Timeline |
| Vishay Intertechnology |
| Apollo Investment Corp |
Vishay Intertechnology and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Apollo Investment
The main advantage of trading using opposite Vishay Intertechnology and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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