Correlation Between Vishay Intertechnology and Highlight Communications
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and Highlight Communications 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 Highlight Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and Highlight Communications AG, you can compare the effects of market volatilities on Vishay Intertechnology and Highlight Communications 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 Highlight Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and Highlight Communications.
Diversification Opportunities for Vishay Intertechnology and Highlight Communications
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vishay and Highlight is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and Highlight Communications AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highlight Communications 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 Highlight Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highlight Communications has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and Highlight Communications go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and Highlight Communications
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 1.62 times less return on investment than Highlight Communications. But when comparing it to its historical volatility, Vishay Intertechnology is 1.47 times less risky than Highlight Communications. It trades about 0.13 of its potential returns per unit of risk. Highlight Communications AG is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Highlight Communications AG on September 13, 2025 and sell it today you would earn a total of 18.00 from holding Highlight Communications AG or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. Highlight Communications AG
Performance |
| Timeline |
| Vishay Intertechnology |
| Highlight Communications |
Vishay Intertechnology and Highlight Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and Highlight Communications
The main advantage of trading using opposite Vishay Intertechnology and Highlight Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, Highlight Communications 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 Highlight Communications will offset losses from the drop in Highlight Communications' long position.| Vishay Intertechnology vs. EIDESVIK OFFSHORE NK | Vishay Intertechnology vs. NAGOYA RAILROAD | Vishay Intertechnology vs. TEXAS ROADHOUSE | Vishay Intertechnology vs. Eidesvik Offshore ASA |
| Highlight Communications vs. Netflix | Highlight Communications vs. Warner Music Group | Highlight Communications vs. CTS Eventim AG | Highlight Communications vs. Origin Agritech |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |