Correlation Between Vishay Intertechnology and First Community
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and First Community 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 First Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and First Community Bancshares, you can compare the effects of market volatilities on Vishay Intertechnology and First Community 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 First Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and First Community.
Diversification Opportunities for Vishay Intertechnology and First Community
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vishay and First is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and First Community Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Community Banc 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 First Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Community Banc has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and First Community go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and First Community
Considering the 90-day investment horizon Vishay Intertechnology is expected to generate 0.85 times more return on investment than First Community. However, Vishay Intertechnology is 1.17 times less risky than First Community. It trades about 0.21 of its potential returns per unit of risk. First Community Bancshares is currently generating about 0.17 per unit of risk. If you would invest 1,702 in Vishay Intertechnology on September 4, 2024 and sell it today you would earn a total of 239.00 from holding Vishay Intertechnology or generate 14.04% 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. First Community Bancshares
Performance |
| Timeline |
| Vishay Intertechnology |
| First Community Banc |
Vishay Intertechnology and First Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and First Community
The main advantage of trading using opposite Vishay Intertechnology and First Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, First Community 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 First Community will offset losses from the drop in First Community's long position.| Vishay Intertechnology vs. Silicon Laboratories | Vishay Intertechnology vs. Diodes Incorporated | Vishay Intertechnology vs. MACOM Technology Solutions | Vishay Intertechnology vs. FormFactor |
| First Community vs. FormFactor | First Community vs. CarsalesCom Ltd ADR | First Community vs. Vishay Intertechnology | First Community vs. Taiwan Semiconductor Manufacturing |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |