Correlation Between Vishay Intertechnology and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and HF SINCLAIR 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 HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and HF SINCLAIR P, you can compare the effects of market volatilities on Vishay Intertechnology and HF SINCLAIR 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 HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and HF SINCLAIR.
Diversification Opportunities for Vishay Intertechnology and HF SINCLAIR
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vishay and HL80 is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P 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 HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and HF SINCLAIR go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and HF SINCLAIR
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 1.19 times more return on investment than HF SINCLAIR. However, Vishay Intertechnology is 1.19 times more volatile than HF SINCLAIR P. It trades about -0.03 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.07 per unit of risk. If you would invest 2,063 in Vishay Intertechnology on September 5, 2024 and sell it today you would lose (233.00) from holding Vishay Intertechnology or give up 11.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. HF SINCLAIR P
Performance |
| Timeline |
| Vishay Intertechnology |
| HF SINCLAIR P |
Vishay Intertechnology and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and HF SINCLAIR
The main advantage of trading using opposite Vishay Intertechnology and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, HF SINCLAIR 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 HF SINCLAIR will offset losses from the drop in HF SINCLAIR's long position.| Vishay Intertechnology vs. DICKER DATA LTD | Vishay Intertechnology vs. SCANSOURCE | Vishay Intertechnology vs. Harmony Gold Mining | Vishay Intertechnology vs. DATAGROUP SE |
| HF SINCLAIR vs. Marathon Petroleum Corp | HF SINCLAIR vs. Neste Oyj | HF SINCLAIR vs. ENEOS Holdings | HF SINCLAIR vs. PTT OILRETBUS FOR BA10 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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