Correlation Between Vishay Precision and Know Labs
Can any of the company-specific risk be diversified away by investing in both Vishay Precision and Know Labs 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 Know Labs 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 Know Labs, you can compare the effects of market volatilities on Vishay Precision and Know Labs 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 Know Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Precision and Know Labs.
Diversification Opportunities for Vishay Precision and Know Labs
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vishay and Know is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Precision Group and Know Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Know Labs 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 Know Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Know Labs has no effect on the direction of Vishay Precision i.e., Vishay Precision and Know Labs go up and down completely randomly.
Pair Corralation between Vishay Precision and Know Labs
Considering the 90-day investment horizon Vishay Precision Group is expected to generate 0.33 times more return on investment than Know Labs. However, Vishay Precision Group is 3.02 times less risky than Know Labs. It trades about -0.07 of its potential returns per unit of risk. Know Labs is currently generating about -0.14 per unit of risk. If you would invest 3,353 in Vishay Precision Group on November 3, 2024 and sell it today you would lose (1,023) from holding Vishay Precision Group or give up 30.51% 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. Know Labs
Performance |
| Timeline |
| Vishay Precision |
| Know Labs |
Vishay Precision and Know Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Precision and Know Labs
The main advantage of trading using opposite Vishay Precision and Know Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Precision position performs unexpectedly, Know Labs 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 Know Labs will offset losses from the drop in Know Labs' long position.| Vishay Precision vs. Spectris plc | Vishay Precision vs. Mesa Laboratories | Vishay Precision vs. ESCO Technologies | Vishay Precision vs. Focus Universal |
| Know Labs vs. Wearable Devices | Know Labs vs. Yoshiharu Global Co | Know Labs vs. bioAffinity Technologies, | Know Labs vs. Jianzhi Education Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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