Correlation Between ALTAIR RES and Vishay Intertechnology

Can any of the company-specific risk be diversified away by investing in both ALTAIR RES 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 ALTAIR RES and Vishay Intertechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ALTAIR RES INC and Vishay Intertechnology, you can compare the effects of market volatilities on ALTAIR RES 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 ALTAIR RES with a short position of Vishay Intertechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and Vishay Intertechnology.

Diversification Opportunities for ALTAIR RES and Vishay Intertechnology

0.0

Correlation Coefficient

ALTAIR RES  Vishay Intertechnology

Pay attention - limited upside

The 3 months correlation between ALTAIR and Vishay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology and ALTAIR RES 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 ALTAIR RES INC 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 ALTAIR RES i.e., ALTAIR RES and Vishay Intertechnology go up and down completely randomly.

Pair Corralation between ALTAIR RES and Vishay Intertechnology

If you would invest  1,613  in Vishay Intertechnology on September 12, 2024 and sell it today you would earn a total of  132.00  from holding Vishay Intertechnology or generate 8.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ALTAIR RES INC  vs.  Vishay Intertechnology

ALTAIR RES INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ALTAIR RES INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ALTAIR RES is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Vishay Intertechnology

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vishay Intertechnology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vishay Intertechnology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with ALTAIR RES and Vishay Intertechnology

The main advantage of trading using opposite ALTAIR RES and Vishay Intertechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES 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.

The idea behind ALTAIR RES INC and Vishay Intertechnology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.