Correlation Between Vishay Intertechnology and Melexis NV
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Melexis NV 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 Melexis NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Melexis NV, you can compare the effects of market volatilities on Vishay Intertechnology and Melexis NV 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 Melexis NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Melexis NV.
Diversification Opportunities for Vishay Intertechnology and Melexis NV
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vishay and Melexis is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Melexis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melexis NV 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 Melexis NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melexis NV has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Melexis NV go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Melexis NV
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 Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Vishay Intertechnology vs. Melexis NV
Performance |
| Timeline |
| Vishay Intertechnology |
| Melexis NV |
Vishay Intertechnology and Melexis NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Melexis NV
The main advantage of trading using opposite Vishay Intertechnology and Melexis NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Melexis NV 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 Melexis NV will offset losses from the drop in Melexis NV'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 |
| Melexis NV vs. Rivian Automotive | Melexis NV vs. Wabash National | Melexis NV vs. FactSet Research Systems | Melexis NV vs. Gentex |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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