Correlation Between Vishay Intertechnology and Elis SA
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Elis SA 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 Elis SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Elis SA, you can compare the effects of market volatilities on Vishay Intertechnology and Elis SA 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 Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Elis SA.
Diversification Opportunities for Vishay Intertechnology and Elis SA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and Elis is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis SA 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 Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Elis SA go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Elis SA
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 2.26 times more return on investment than Elis SA. However, Vishay Intertechnology is 2.26 times more volatile than Elis SA. It trades about 0.15 of its potential returns per unit of risk. Elis SA is currently generating about -0.26 per unit of risk. If you would invest 1,505 in Vishay Intertechnology on September 15, 2024 and sell it today you would earn a total of 162.00 from holding Vishay Intertechnology or generate 10.76% 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. Elis SA
Performance |
| Timeline |
| Vishay Intertechnology |
| Elis SA |
Vishay Intertechnology and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Elis SA
The main advantage of trading using opposite Vishay Intertechnology and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Elis SA 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 Elis SA will offset losses from the drop in Elis SA's long position.| Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc |
| Elis SA vs. Vishay Intertechnology | Elis SA vs. DELTA AIR LINES | Elis SA vs. Ryanair Holdings plc | Elis SA vs. Westinghouse Air Brake |
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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