Correlation Between Vishay Intertechnology and BrainChip Holdings
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and BrainChip Holdings 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 BrainChip Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and BrainChip Holdings, you can compare the effects of market volatilities on Vishay Intertechnology and BrainChip Holdings 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 BrainChip Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and BrainChip Holdings.
Diversification Opportunities for Vishay Intertechnology and BrainChip Holdings
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and BrainChip is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and BrainChip Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrainChip Holdings 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 BrainChip Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrainChip Holdings has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and BrainChip Holdings go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and BrainChip Holdings
Considering the 90-day investment horizon Vishay Intertechnology is expected to generate 1.12 times less return on investment than BrainChip Holdings. But when comparing it to its historical volatility, Vishay Intertechnology is 1.88 times less risky than BrainChip Holdings. It trades about 0.19 of its potential returns per unit of risk. BrainChip Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 577.00 in BrainChip Holdings on September 1, 2024 and sell it today you would earn a total of 65.00 from holding BrainChip Holdings or generate 11.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. BrainChip Holdings
Performance |
| Timeline |
| Vishay Intertechnology |
| BrainChip Holdings |
Vishay Intertechnology and BrainChip Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and BrainChip Holdings
The main advantage of trading using opposite Vishay Intertechnology and BrainChip Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, BrainChip Holdings 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 BrainChip Holdings will offset losses from the drop in BrainChip Holdings' long position.| Vishay Intertechnology vs. Desktop Metal | Vishay Intertechnology vs. Fabrinet | Vishay Intertechnology vs. Knowles Cor | Vishay Intertechnology vs. Ubiquiti Networks |
| BrainChip Holdings vs. Power Integrations | BrainChip Holdings vs. MACOM Technology Solutions | BrainChip Holdings vs. Intchains Group Limited | BrainChip Holdings vs. Vishay Intertechnology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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