Correlation Between AmpliTech and Vishay Intertechnology

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

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

Diversification Opportunities for AmpliTech and Vishay Intertechnology

-0.05

Correlation Coefficient

AmpliTech  Vishay Intertechnology

Good diversification

The 3 months correlation between AmpliTech and Vishay is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding AmpliTech Group and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology and AmpliTech 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 AmpliTech Group 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 AmpliTech i.e., AmpliTech and Vishay Intertechnology go up and down completely randomly.

Pair Corralation between AmpliTech and Vishay Intertechnology

Assuming the 90 days horizon AmpliTech Group is expected to under-perform the Vishay Intertechnology. In addition to that, AmpliTech is 6.3 times more volatile than Vishay Intertechnology. It trades about -0.01 of its total potential returns per unit of risk. Vishay Intertechnology is currently generating about -0.01 per unit of volatility. If you would invest  1,674  in Vishay Intertechnology on December 29, 2024 and sell it today you would lose (56.00) from holding Vishay Intertechnology or give up 3.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AmpliTech Group  vs.  Vishay Intertechnology

AmpliTech Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days AmpliTech Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Vishay Intertechnology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vishay Intertechnology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Vishay Intertechnology is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with AmpliTech and Vishay Intertechnology

The main advantage of trading using opposite AmpliTech and Vishay Intertechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmpliTech 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 AmpliTech Group 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.