Correlation Between Vishay Intertechnology and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Biglari 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 Biglari 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 Biglari Holdings, you can compare the effects of market volatilities on Vishay Intertechnology and Biglari 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 Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Biglari Holdings.
Diversification Opportunities for Vishay Intertechnology and Biglari Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and Biglari is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari 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 Biglari Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biglari Holdings has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Biglari Holdings go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Biglari Holdings
Considering the 90-day investment horizon Vishay Intertechnology is expected to generate 2.84 times less return on investment than Biglari Holdings. In addition to that, Vishay Intertechnology is 1.12 times more volatile than Biglari Holdings. It trades about 0.13 of its total potential returns per unit of risk. Biglari Holdings is currently generating about 0.4 per unit of volatility. If you would invest 17,300 in Biglari Holdings on September 5, 2024 and sell it today you would earn a total of 5,118 from holding Biglari Holdings or generate 29.58% 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. Biglari Holdings
Performance |
| Timeline |
| Vishay Intertechnology |
| Biglari Holdings |
Vishay Intertechnology and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Biglari Holdings
The main advantage of trading using opposite Vishay Intertechnology and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Biglari 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 Biglari Holdings will offset losses from the drop in Biglari Holdings' long position.| Vishay Intertechnology vs. Silicon Laboratories | Vishay Intertechnology vs. Diodes Incorporated | Vishay Intertechnology vs. MACOM Technology Solutions | Vishay Intertechnology vs. FormFactor |
| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |