Correlation Between Vishay Intertechnology and Wabash National
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Wabash National 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 Wabash National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Wabash National, you can compare the effects of market volatilities on Vishay Intertechnology and Wabash National 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 Wabash National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Wabash National.
Diversification Opportunities for Vishay Intertechnology and Wabash National
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Vishay and Wabash is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Wabash National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabash National 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 Wabash National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabash National has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Wabash National go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Wabash National
Considering the 90-day investment horizon Vishay Intertechnology is expected to under-perform the Wabash National. But the stock apears to be less risky and, when comparing its historical volatility, Vishay Intertechnology is 1.17 times less risky than Wabash National. The stock trades about -0.01 of its potential returns per unit of risk. The Wabash National is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,198 in Wabash National on September 20, 2024 and sell it today you would lose (371.00) from holding Wabash National or give up 16.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Wabash National
Performance |
| Timeline |
| Vishay Intertechnology |
| Wabash National |
Vishay Intertechnology and Wabash National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Wabash National
The main advantage of trading using opposite Vishay Intertechnology and Wabash National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Wabash National 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 Wabash National will offset losses from the drop in Wabash National's long position.| Vishay Intertechnology vs. IONQ Inc | Vishay Intertechnology vs. Quantum | Vishay Intertechnology vs. Super Micro Computer | Vishay Intertechnology vs. Red Cat Holdings |
| Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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