Correlation Between Vishay Intertechnology and Proficient Auto

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

By analyzing existing cross correlation between Vishay Intertechnology and Proficient Auto Logistics,, you can compare the effects of market volatilities on Vishay Intertechnology and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Proficient Auto.

Diversification Opportunities for Vishay Intertechnology and Proficient Auto

0.28

Correlation Coefficient

Vishay Intertechnology  Proficient Auto

Modest diversification

The 3 months correlation between Vishay and Proficient is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Proficient Auto go up and down completely randomly.

Pair Corralation between Vishay Intertechnology and Proficient Auto

Considering the 90-day investment horizon Vishay Intertechnology is expected to under-perform the Proficient Auto. But the stock apears to be less risky and, when comparing its historical volatility, Vishay Intertechnology is 2.3 times less risky than Proficient Auto. The stock trades about -0.16 of its potential returns per unit of risk. The Proficient Auto Logistics, is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  965.00  in Proficient Auto Logistics, on October 10, 2024 and sell it today you would lose (38.00) from holding Proficient Auto Logistics, or give up 3.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Vishay Intertechnology  vs.  Proficient Auto Logistics,

Vishay Intertechnology

Risk-Adjusted Performance

0 of 100

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.

Proficient Auto Logi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Proficient Auto Logistics, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Vishay Intertechnology and Proficient Auto

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

The idea behind Vishay Intertechnology and Proficient Auto Logistics, 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.