Correlation Between Vishay Intertechnology and DAX Index
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By analyzing existing cross correlation between Vishay Intertechnology and DAX Index, you can compare the effects of market volatilities on Vishay Intertechnology and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vishay Intertechnology and DAX Index.
Diversification Opportunities for Vishay Intertechnology and DAX Index
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vishay and DAX is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Vishay Intertechnology and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Vishay Intertechnology i.e., Vishay Intertechnology and DAX Index go up and down completely randomly.
Pair Corralation between Vishay Intertechnology and DAX Index
Assuming the 90 days trading horizon Vishay Intertechnology is expected to generate 4.13 times more return on investment than DAX Index. However, Vishay Intertechnology is 4.13 times more volatile than DAX Index. It trades about 0.15 of its potential returns per unit of risk. DAX Index is currently generating about -0.05 per unit of risk. If you would invest 1,597 in Vishay Intertechnology on August 30, 2024 and sell it today you would earn a total of 198.00 from holding Vishay Intertechnology or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vishay Intertechnology vs. DAX Index
Performance |
| Timeline |
Vishay Intertechnology and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Vishay Intertechnology
Pair trading matchups for Vishay Intertechnology
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Vishay Intertechnology and DAX Index
The main advantage of trading using opposite Vishay Intertechnology and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vishay Intertechnology position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Vishay Intertechnology vs. SBA Communications Corp | Vishay Intertechnology vs. AIR PRODCHEMICALS | Vishay Intertechnology vs. GREENX METALS LTD | Vishay Intertechnology vs. Harmony Gold Mining |
| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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