Correlation Between Vishay Intertechnology and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Akanda Corp 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 Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Akanda Corp, you can compare the effects of market volatilities on Vishay Intertechnology and Akanda Corp 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 Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Akanda Corp.
Diversification Opportunities for Vishay Intertechnology and Akanda Corp
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vishay and Akanda is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp 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 Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Akanda Corp go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Akanda Corp
Considering the 90-day investment horizon Vishay Intertechnology is expected to generate 1.38 times less return on investment than Akanda Corp. But when comparing it to its historical volatility, Vishay Intertechnology is 1.55 times less risky than Akanda Corp. It trades about 0.19 of its potential returns per unit of risk. Akanda Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Akanda Corp on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Akanda Corp or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Akanda Corp
Performance |
| Timeline |
| Vishay Intertechnology |
| Akanda Corp |
Vishay Intertechnology and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Akanda Corp
The main advantage of trading using opposite Vishay Intertechnology and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Vishay Intertechnology vs. Desktop Metal | Vishay Intertechnology vs. Knowles Cor | Vishay Intertechnology vs. Ubiquiti Networks | Vishay Intertechnology vs. AmpliTech Group |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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