Correlation Between Vishay Precision and Genasys

Can any of the company-specific risk be diversified away by investing in both Vishay Precision and Genasys 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 Genasys 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 Genasys, you can compare the effects of market volatilities on Vishay Precision and Genasys 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 Genasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Precision and Genasys.

Diversification Opportunities for Vishay Precision and Genasys

-0.73

Correlation Coefficient

Vishay Precision  Genasys

Pay attention - limited upside

The 3 months correlation between Vishay and Genasys is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Precision Group and Genasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genasys 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 Genasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genasys has no effect on the direction of Vishay Precision i.e., Vishay Precision and Genasys go up and down completely randomly.

Pair Corralation between Vishay Precision and Genasys

Considering the 90-day investment horizon Vishay Precision Group is expected to under-perform the Genasys. But the stock apears to be less risky and, when comparing its historical volatility, Vishay Precision Group is 1.15 times less risky than Genasys. The stock trades about -0.1 of its potential returns per unit of risk. The Genasys is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  301.00  in Genasys on August 31, 2024 and sell it today you would earn a total of  78.00  from holding Genasys or generate 25.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Vishay Precision Group  vs.  Genasys

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 December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Genasys

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genasys are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Genasys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vishay Precision and Genasys

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

The idea behind Vishay Precision Group and Genasys 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.