Correlation Between Vishay Intertechnology and 22nd Century
Can any of the company-specific risk be diversified away by investing in both Vishay Intertechnology and 22nd Century 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 22nd Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vishay Intertechnology and 22nd Century Group, you can compare the effects of market volatilities on Vishay Intertechnology and 22nd Century 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 22nd Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and 22nd Century.
Diversification Opportunities for Vishay Intertechnology and 22nd Century
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vishay and 22nd is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and 22nd Century Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22nd Century Group 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 22nd Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22nd Century Group has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and 22nd Century go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and 22nd Century
Considering the 90-day investment horizon Vishay Intertechnology is expected to generate 0.4 times more return on investment than 22nd Century. However, Vishay Intertechnology is 2.49 times less risky than 22nd Century. It trades about 0.02 of its potential returns per unit of risk. 22nd Century Group is currently generating about -0.05 per unit of risk. If you would invest 1,508 in Vishay Intertechnology on September 10, 2025 and sell it today you would earn a total of 20.00 from holding Vishay Intertechnology or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. 22nd Century Group
Performance |
| Timeline |
| Vishay Intertechnology |
| 22nd Century Group |
Vishay Intertechnology and 22nd Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vishay Intertechnology and 22nd Century
The main advantage of trading using opposite Vishay Intertechnology and 22nd Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, 22nd Century 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 22nd Century will offset losses from the drop in 22nd Century's long position.| Vishay Intertechnology vs. Power Integrations | Vishay Intertechnology vs. Daqo New Energy | Vishay Intertechnology vs. Diodes Incorporated | Vishay Intertechnology vs. Applied Opt |
| 22nd Century vs. Oriental Rise Holdings | 22nd Century vs. Myndai, | 22nd Century vs. Greenlane Holdings | 22nd Century vs. Four Seasons Education |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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