Correlation Between Vishay Precision and Cepton
Can any of the company-specific risk be diversified away by investing in both Vishay Precision and Cepton 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 Precision and Cepton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Precision Group and Cepton Inc, you can compare the effects of market volatilities on Vishay Precision and Cepton 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 Precision with a short position of Cepton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Precision and Cepton.
Diversification Opportunities for Vishay Precision and Cepton
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and Cepton is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Precision Group and Cepton Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cepton Inc and Vishay Precision 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 Precision Group are associated (or correlated) with Cepton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cepton Inc has no effect on the direction of Vishay Precision i.e., Vishay Precision and Cepton go up and down completely randomly.
Pair Corralation between Vishay Precision and Cepton
Considering the 90-day investment horizon Vishay Precision Group is expected to under-perform the Cepton. But the stock apears to be less risky and, when comparing its historical volatility, Vishay Precision Group is 8.43 times less risky than Cepton. The stock trades about -0.04 of its potential returns per unit of risk. The Cepton Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Cepton Inc on August 30, 2024 and sell it today you would lose (9.26) from holding Cepton Inc or give up 92.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.45% |
| Values | Daily Returns |
Vishay Precision Group vs. Cepton Inc
Performance |
| Timeline |
| Vishay Precision |
| Cepton Inc |
Vishay Precision and Cepton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Precision and Cepton
The main advantage of trading using opposite Vishay Precision and Cepton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Precision position performs unexpectedly, Cepton 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 Cepton will offset losses from the drop in Cepton's long position.| Vishay Precision vs. Coherent | Vishay Precision vs. ESCO Technologies | Vishay Precision vs. Mesa Laboratories | Vishay Precision vs. Sensata Technologies Holding |
| Cepton vs. Cepton Inc | Cepton vs. Thayer Ventures Acquisition | Cepton vs. Anghami Warrants | Cepton vs. Inspirato |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |