Correlation Between Qbeyond AG and Vishay Precision

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

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

Diversification Opportunities for Qbeyond AG and Vishay Precision

0.03

Correlation Coefficient

Qbeyond AG  Vishay Precision

Significant diversification

The 3 months correlation between Qbeyond and Vishay is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding qbeyond AG and Vishay Precision Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Precision and Qbeyond AG 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 qbeyond AG 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 Qbeyond AG i.e., Qbeyond AG and Vishay Precision go up and down completely randomly.

Pair Corralation between Qbeyond AG and Vishay Precision

Assuming the 90 days horizon qbeyond AG is expected to generate 1.25 times more return on investment than Vishay Precision. However, Qbeyond AG is 1.25 times more volatile than Vishay Precision Group. It trades about -0.01 of its potential returns per unit of risk. Vishay Precision Group is currently generating about -0.05 per unit of risk. If you would invest  87.00  in qbeyond AG on September 12, 2024 and sell it today you would lose (13.00) from holding qbeyond AG or give up 14.94% of portfolio value over 90 days.

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

qbeyond AG  vs.  Vishay Precision Group

qbeyond AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days qbeyond AG 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 technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Vishay Precision

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vishay Precision Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 Qbeyond AG and Vishay Precision

The main advantage of trading using opposite Qbeyond AG and Vishay Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qbeyond AG 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 qbeyond AG 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.