Correlation Between ASPEN TECHINC and Vishay Intertechnology
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC and Vishay Intertechnology 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 ASPEN TECHINC and Vishay Intertechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and Vishay Intertechnology, you can compare the effects of market volatilities on ASPEN TECHINC and Vishay Intertechnology 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 ASPEN TECHINC with a short position of Vishay Intertechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and Vishay Intertechnology.
Diversification Opportunities for ASPEN TECHINC and Vishay Intertechnology
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between ASPEN and Vishay is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology and ASPEN TECHINC 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 ASPEN TECHINC DL are associated (or correlated) with Vishay Intertechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vishay Intertechnology has no effect on the direction of ASPEN TECHINC i.e., ASPEN TECHINC and Vishay Intertechnology go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and Vishay Intertechnology
Assuming the 90 days horizon ASPEN TECHINC DL is expected to generate 0.49 times more return on investment than Vishay Intertechnology. However, ASPEN TECHINC DL is 2.04 times less risky than Vishay Intertechnology. It trades about 0.23 of its potential returns per unit of risk. Vishay Intertechnology is currently generating about -0.06 per unit of risk. If you would invest 23,800 in ASPEN TECHINC DL on November 4, 2024 and sell it today you would earn a total of 1,200 from holding ASPEN TECHINC DL or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. Vishay Intertechnology
Performance |
| Timeline |
| ASPEN TECHINC DL |
| Vishay Intertechnology |
ASPEN TECHINC and Vishay Intertechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and Vishay Intertechnology
The main advantage of trading using opposite ASPEN TECHINC and Vishay Intertechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC position performs unexpectedly, Vishay Intertechnology 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 Vishay Intertechnology will offset losses from the drop in Vishay Intertechnology's long position.| ASPEN TECHINC vs. AWILCO DRILLING PLC | ASPEN TECHINC vs. Cars Inc | ASPEN TECHINC vs. CARSALESCOM | ASPEN TECHINC vs. Motorcar Parts of |
| Vishay Intertechnology vs. Fuji Media Holdings | Vishay Intertechnology vs. PLAYMATES TOYS | Vishay Intertechnology vs. OURGAME INTHOLDL 00005 | Vishay Intertechnology vs. QINGCI GAMES INC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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