Correlation Between TOWNSQUARE MEDIA and DAX Index
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By analyzing existing cross correlation between TOWNSQUARE MEDIA INC and DAX Index, you can compare the effects of market volatilities on TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and DAX Index.
Diversification Opportunities for TOWNSQUARE MEDIA and DAX Index
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TOWNSQUARE and DAX is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA INC 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 TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and DAX Index go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and DAX Index
Assuming the 90 days trading horizon TOWNSQUARE MEDIA is expected to generate 6.61 times less return on investment than DAX Index. In addition to that, TOWNSQUARE MEDIA is 3.09 times more volatile than DAX Index. It trades about 0.02 of its total potential returns per unit of risk. DAX Index is currently generating about 0.45 per unit of volatility. If you would invest 1,926,370 in DAX Index on September 15, 2024 and sell it today you would earn a total of 114,222 from holding DAX Index or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. DAX Index
Performance |
| Timeline |
TOWNSQUARE MEDIA and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
TOWNSQUARE MEDIA INC
Pair trading matchups for TOWNSQUARE MEDIA
DAX Index
Pair trading matchups for DAX Index
Pair Trading with TOWNSQUARE MEDIA and DAX Index
The main advantage of trading using opposite TOWNSQUARE MEDIA and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA 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.| TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc |
| DAX Index vs. Flutter Entertainment PLC | DAX Index vs. LG Display Co | DAX Index vs. TOWNSQUARE MEDIA INC | DAX Index vs. Prosiebensat 1 Media |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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