Correlation Between Vishay Intertechnology and KOWORLD AG
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and KOWORLD AG 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 KOWORLD AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and KOWORLD AG, you can compare the effects of market volatilities on Vishay Intertechnology and KOWORLD AG 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 KOWORLD AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and KOWORLD AG.
Diversification Opportunities for Vishay Intertechnology and KOWORLD AG
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vishay and KOWORLD is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and KOWORLD AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOWORLD AG 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 KOWORLD AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOWORLD AG has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and KOWORLD AG go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and KOWORLD AG
Assuming the 90 days trading horizon Vishay Intertechnology is expected to under-perform the KOWORLD AG. In addition to that, Vishay Intertechnology is 1.59 times more volatile than KOWORLD AG. It trades about -0.06 of its total potential returns per unit of risk. KOWORLD AG is currently generating about 0.02 per unit of volatility. If you would invest 2,800 in KOWORLD AG on October 25, 2024 and sell it today you would earn a total of 10.00 from holding KOWORLD AG or generate 0.36% 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. KOWORLD AG
Performance |
| Timeline |
| Vishay Intertechnology |
| KOWORLD AG |
Vishay Intertechnology and KOWORLD AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and KOWORLD AG
The main advantage of trading using opposite Vishay Intertechnology and KOWORLD AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, KOWORLD AG 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 KOWORLD AG will offset losses from the drop in KOWORLD AG's long position.| Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc | Vishay Intertechnology vs. Apple Inc |
| KOWORLD AG vs. Keck Seng Investments | KOWORLD AG vs. FIRST SAVINGS FINL | KOWORLD AG vs. Vishay Intertechnology | KOWORLD AG vs. SLR Investment Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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