Correlation Between Xtrackers ShortDAX and Vishay Intertechnology

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

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

Diversification Opportunities for Xtrackers ShortDAX and Vishay Intertechnology

-0.77

Correlation Coefficient

Xtrackers ShortDAX  Vishay Intertechnology

Pay attention - limited upside

The 3 months correlation between Xtrackers and Vishay is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Vishay Intertechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vishay Intertechnology and Xtrackers ShortDAX 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 Xtrackers ShortDAX are associated (or correlated) with Vishay Intertechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vishay Intertechnology has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Vishay Intertechnology go up and down completely randomly.

Pair Corralation between Xtrackers ShortDAX and Vishay Intertechnology

Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Vishay Intertechnology. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.87 times less risky than Vishay Intertechnology. The etf trades about -0.13 of its potential returns per unit of risk. The Vishay Intertechnology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1,015  in Vishay Intertechnology on April 24, 2025 and sell it today you would earn a total of  470.00  from holding Vishay Intertechnology or generate 46.31% return on investment over 90 days.

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

Xtrackers ShortDAX  vs.  Vishay Intertechnology

Xtrackers ShortDAX

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xtrackers ShortDAX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Vishay Intertechnology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vishay Intertechnology are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Vishay Intertechnology unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xtrackers ShortDAX and Vishay Intertechnology

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

The idea behind Xtrackers ShortDAX and Vishay Intertechnology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.