Correlation Between Focus Home and DAX Index
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By analyzing existing cross correlation between Focus Home Interactive and DAX Index, you can compare the effects of market volatilities on Focus Home 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 Focus Home with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Home and DAX Index.
Diversification Opportunities for Focus Home and DAX Index
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Focus and DAX is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Focus Home Interactive and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Focus Home 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 Focus Home Interactive 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 Focus Home i.e., Focus Home and DAX Index go up and down completely randomly.
Pair Corralation between Focus Home and DAX Index
Assuming the 90 days horizon Focus Home Interactive is expected to under-perform the DAX Index. In addition to that, Focus Home is 4.37 times more volatile than DAX Index. It trades about -0.03 of its total potential returns per unit of risk. DAX Index is currently generating about 0.07 per unit of volatility. If you would invest 1,923,836 in DAX Index on September 26, 2024 and sell it today you would earn a total of 61,041 from holding DAX Index or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Home Interactive vs. DAX Index
Performance |
| Timeline |
Focus Home and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Focus Home Interactive
Pair trading matchups for Focus Home
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Focus Home and DAX Index
The main advantage of trading using opposite Focus Home and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Home 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.| Focus Home vs. Nintendo Co | Focus Home vs. Sea Limited | Focus Home vs. Electronic Arts | Focus Home vs. NEXON Co |
| DAX Index vs. CODERE ONLINE LUX | DAX Index vs. CARSALESCOM | DAX Index vs. PACIFIC ONLINE | DAX Index vs. Focus Home Interactive |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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