Correlation Between Vishay Intertechnology and EHEALTH
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and EHEALTH 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 EHEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and EHEALTH, you can compare the effects of market volatilities on Vishay Intertechnology and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and EHEALTH.
Diversification Opportunities for Vishay Intertechnology and EHEALTH
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vishay and EHEALTH is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and EHEALTH go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and EHEALTH
Assuming the 90 days trading horizon Vishay Intertechnology is expected to under-perform the EHEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Vishay Intertechnology is 2.12 times less risky than EHEALTH. The stock trades about -0.04 of its potential returns per unit of risk. The EHEALTH is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 700.00 in EHEALTH on September 12, 2024 and sell it today you would lose (181.00) from holding EHEALTH or give up 25.86% 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. EHEALTH
Performance |
| Timeline |
| Vishay Intertechnology |
| EHEALTH |
Vishay Intertechnology and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and EHEALTH
The main advantage of trading using opposite Vishay Intertechnology and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.| Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc |
| EHEALTH vs. PREMIER FOODS | EHEALTH vs. Commonwealth Bank of | EHEALTH vs. ASSOC BR FOODS | EHEALTH vs. Thai Beverage Public |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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