Correlation Between Vishay Intertechnology and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Jacquet Metal Service, you can compare the effects of market volatilities on Vishay Intertechnology and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Jacquet Metal.
Diversification Opportunities for Vishay Intertechnology and Jacquet Metal
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vishay and Jacquet is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Jacquet Metal go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Jacquet Metal
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 1.86 times less return on investment than Jacquet Metal. In addition to that, Vishay Intertechnology is 1.2 times more volatile than Jacquet Metal Service. It trades about 0.01 of its total potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.01 per unit of volatility. If you would invest 1,519 in Jacquet Metal Service on September 5, 2024 and sell it today you would earn a total of 43.00 from holding Jacquet Metal Service or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Jacquet Metal Service
Performance |
| Timeline |
| Vishay Intertechnology |
| Jacquet Metal Service |
Vishay Intertechnology and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Jacquet Metal
The main advantage of trading using opposite Vishay Intertechnology and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Vishay Intertechnology vs. DICKER DATA LTD | Vishay Intertechnology vs. SCANSOURCE | Vishay Intertechnology vs. Harmony Gold Mining | Vishay Intertechnology vs. DATAGROUP SE |
| Jacquet Metal vs. Charter Communications | Jacquet Metal vs. Merit Medical Systems | Jacquet Metal vs. Iridium Communications | Jacquet Metal vs. ONWARD MEDICAL BV |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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