Correlation Between Vishay Intertechnology and Griffon
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Griffon 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 Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Griffon, you can compare the effects of market volatilities on Vishay Intertechnology and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Griffon.
Diversification Opportunities for Vishay Intertechnology and Griffon
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vishay and Griffon is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Griffon go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Griffon
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 1.56 times more return on investment than Griffon. However, Vishay Intertechnology is 1.56 times more volatile than Griffon. It trades about 0.19 of its potential returns per unit of risk. Griffon is currently generating about 0.12 per unit of risk. If you would invest 1,446 in Vishay Intertechnology on September 19, 2024 and sell it today you would earn a total of 205.00 from holding Vishay Intertechnology or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Griffon
Performance |
| Timeline |
| Vishay Intertechnology |
| Griffon |
Vishay Intertechnology and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Griffon
The main advantage of trading using opposite Vishay Intertechnology and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.| Vishay Intertechnology vs. Nissan Chemical Corp | Vishay Intertechnology vs. Sabra Health Care | Vishay Intertechnology vs. YOOMA WELLNESS INC | Vishay Intertechnology vs. CHEMICAL INDUSTRIES |
| Griffon vs. Sunny Optical Technology | Griffon vs. Tencent Music Entertainment | Griffon vs. Vishay Intertechnology | Griffon vs. Casio Computer CoLtd |
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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