Correlation Between Vishay Intertechnology and SAG Holdings
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and SAG 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 SAG 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 SAG Holdings Limited, you can compare the effects of market volatilities on Vishay Intertechnology and SAG 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 SAG Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and SAG Holdings.
Diversification Opportunities for Vishay Intertechnology and SAG Holdings
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vishay and SAG is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and SAG Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAG Holdings Limited 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 SAG Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAG Holdings Limited has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and SAG Holdings go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and SAG Holdings
Considering the 90-day investment horizon Vishay Intertechnology is expected to generate 0.52 times more return on investment than SAG Holdings. However, Vishay Intertechnology is 1.93 times less risky than SAG Holdings. It trades about 0.19 of its potential returns per unit of risk. SAG Holdings Limited is currently generating about -0.14 per unit of risk. If you would invest 1,695 in Vishay Intertechnology on September 2, 2024 and sell it today you would earn a total of 215.00 from holding Vishay Intertechnology or generate 12.68% 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. SAG Holdings Limited
Performance |
| Timeline |
| Vishay Intertechnology |
| SAG Holdings Limited |
Vishay Intertechnology and SAG Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and SAG Holdings
The main advantage of trading using opposite Vishay Intertechnology and SAG Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, SAG 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 SAG Holdings will offset losses from the drop in SAG Holdings' long position.| Vishay Intertechnology vs. Knowles Cor | Vishay Intertechnology vs. Ubiquiti Networks | Vishay Intertechnology vs. AmpliTech Group | Vishay Intertechnology vs. Viavi Solutions |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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