Correlation Between Vishay Precision and Nanalysis Scientific

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

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

Diversification Opportunities for Vishay Precision and Nanalysis Scientific

0.18

Correlation Coefficient

Vishay Precision  Nanalysis Scientific

Average diversification

The 3 months correlation between Vishay and Nanalysis is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Precision Group and Nanalysis Scientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanalysis Scientific Corp and Vishay Precision 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 Precision Group are associated (or correlated) with Nanalysis Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanalysis Scientific Corp has no effect on the direction of Vishay Precision i.e., Vishay Precision and Nanalysis Scientific go up and down completely randomly.

Pair Corralation between Vishay Precision and Nanalysis Scientific

Considering the 90-day investment horizon Vishay Precision Group is expected to under-perform the Nanalysis Scientific. But the stock apears to be less risky and, when comparing its historical volatility, Vishay Precision Group is 1.94 times less risky than Nanalysis Scientific. The stock trades about -0.03 of its potential returns per unit of risk. The Nanalysis Scientific Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  33.00  in Nanalysis Scientific Corp on July 24, 2024 and sell it today you would lose (7.00) from holding Nanalysis Scientific Corp or give up 21.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

Vishay Precision Group  vs.  Nanalysis Scientific Corp

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Nanalysis Scientific Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nanalysis Scientific Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's forward indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Vishay Precision and Nanalysis Scientific

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

The idea behind Vishay Precision Group and Nanalysis Scientific Corp 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.