Correlation Between Vishay Intertechnology and Bridger Aerospace
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Bridger Aerospace 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 Bridger Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Bridger Aerospace Group, you can compare the effects of market volatilities on Vishay Intertechnology and Bridger Aerospace 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 Bridger Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Bridger Aerospace.
Diversification Opportunities for Vishay Intertechnology and Bridger Aerospace
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and Bridger is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Bridger Aerospace Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridger Aerospace 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 Bridger Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridger Aerospace has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Bridger Aerospace go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Bridger Aerospace
Considering the 90-day investment horizon Vishay Intertechnology is expected to generate 0.77 times more return on investment than Bridger Aerospace. However, Vishay Intertechnology is 1.3 times less risky than Bridger Aerospace. It trades about 0.19 of its potential returns per unit of risk. Bridger Aerospace Group is currently generating about -0.17 per unit of risk. If you would invest 1,702 in Vishay Intertechnology on September 3, 2024 and sell it today you would earn a total of 208.00 from holding Vishay Intertechnology or generate 12.22% 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. Bridger Aerospace Group
Performance |
| Timeline |
| Vishay Intertechnology |
| Bridger Aerospace |
Vishay Intertechnology and Bridger Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Bridger Aerospace
The main advantage of trading using opposite Vishay Intertechnology and Bridger Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Bridger Aerospace 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 Bridger Aerospace will offset losses from the drop in Bridger Aerospace's long position.| Vishay Intertechnology vs. Silicon Motion Technology | Vishay Intertechnology vs. ASE Industrial Holding | Vishay Intertechnology vs. SemiLEDS | Vishay Intertechnology vs. Advanced Micro Devices |
| Bridger Aerospace vs. Allegion PLC | Bridger Aerospace vs. MSA Safety | Bridger Aerospace vs. Resideo Technologies | Bridger Aerospace vs. NL Industries |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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