Correlation Between Vishay Precision and Itron
Can any of the company-specific risk be diversified away by investing in both Vishay Precision and Itron 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 Itron 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 Itron Inc, you can compare the effects of market volatilities on Vishay Precision and Itron 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 Itron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Precision and Itron.
Diversification Opportunities for Vishay Precision and Itron
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and Itron is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Precision Group and Itron Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itron 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 Itron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itron Inc has no effect on the direction of Vishay Precision i.e., Vishay Precision and Itron go up and down completely randomly.
Pair Corralation between Vishay Precision and Itron
Considering the 90-day investment horizon Vishay Precision Group is expected to generate 1.53 times more return on investment than Itron. However, Vishay Precision is 1.53 times more volatile than Itron Inc. It trades about -0.05 of its potential returns per unit of risk. Itron Inc is currently generating about -0.15 per unit of risk. If you would invest 2,315 in Vishay Precision Group on October 21, 2024 and sell it today you would lose (42.00) from holding Vishay Precision Group or give up 1.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Precision Group vs. Itron Inc
Performance |
| Timeline |
| Vishay Precision |
| Itron Inc |
Vishay Precision and Itron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Precision and Itron
The main advantage of trading using opposite Vishay Precision and Itron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Precision position performs unexpectedly, Itron 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 Itron will offset losses from the drop in Itron's long position.| Vishay Precision vs. Spectris plc | Vishay Precision vs. Mesa Laboratories | Vishay Precision vs. ESCO Technologies | Vishay Precision vs. Focus Universal |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |