Correlation Between 26442UAC8 and Vishay Precision

Can any of the company-specific risk be diversified away by investing in both 26442UAC8 and Vishay Precision 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 26442UAC8 and Vishay Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DUKE ENERGY PROGRESS and Vishay Precision Group, you can compare the effects of market volatilities on 26442UAC8 and Vishay Precision 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 26442UAC8 with a short position of Vishay Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26442UAC8 and Vishay Precision.

Diversification Opportunities for 26442UAC8 and Vishay Precision

-0.3

Correlation Coefficient

26442UAC8  Vishay Precision

Very good diversification

The 3 months correlation between 26442UAC8 and Vishay is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding DUKE ENERGY PROGRESS and Vishay Precision Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Precision and 26442UAC8 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 DUKE ENERGY PROGRESS are associated (or correlated) with Vishay Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vishay Precision has no effect on the direction of 26442UAC8 i.e., 26442UAC8 and Vishay Precision go up and down completely randomly.

Pair Corralation between 26442UAC8 and Vishay Precision

Assuming the 90 days trading horizon DUKE ENERGY PROGRESS is expected to under-perform the Vishay Precision. But the bond apears to be less risky and, when comparing its historical volatility, DUKE ENERGY PROGRESS is 1.43 times less risky than Vishay Precision. The bond trades about -0.21 of its potential returns per unit of risk. The Vishay Precision Group is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  2,417  in Vishay Precision Group on October 8, 2024 and sell it today you would lose (57.00) from holding Vishay Precision Group or give up 2.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	57.89%
Values	Daily Returns

DUKE ENERGY PROGRESS  vs.  Vishay Precision Group

DUKE ENERGY PROGRESS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days DUKE ENERGY PROGRESS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for DUKE ENERGY PROGRESS investors.

Vishay Precision

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with 26442UAC8 and Vishay Precision

The main advantage of trading using opposite 26442UAC8 and Vishay Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26442UAC8 position performs unexpectedly, Vishay Precision 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 Precision will offset losses from the drop in Vishay Precision's long position.

The idea behind DUKE ENERGY PROGRESS and Vishay Precision Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.