Correlation Between Altair Engineering and DAX Index
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By analyzing existing cross correlation between Altair Engineering and DAX Index, you can compare the effects of market volatilities on Altair Engineering 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 Altair Engineering with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and DAX Index.
Diversification Opportunities for Altair Engineering and DAX Index
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altair and DAX is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Altair Engineering 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 Altair Engineering 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 Altair Engineering i.e., Altair Engineering and DAX Index go up and down completely randomly.
Pair Corralation between Altair Engineering and DAX Index
Assuming the 90 days horizon Altair Engineering is expected to generate 300.15 times less return on investment than DAX Index. But when comparing it to its historical volatility, Altair Engineering is 1.25 times less risky than DAX Index. It trades about 0.0 of its potential returns per unit of risk. DAX Index is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 2,002,466 in DAX Index on November 1, 2024 and sell it today you would earn a total of 161,287 from holding DAX Index or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altair Engineering vs. DAX Index
Performance |
| Timeline |
Altair Engineering and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Altair Engineering
Pair trading matchups for Altair Engineering
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Altair Engineering and DAX Index
The main advantage of trading using opposite Altair Engineering and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering 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.| Altair Engineering vs. PNC Financial Services | Altair Engineering vs. Discover Financial Services | Altair Engineering vs. BANK OF CHINA | Altair Engineering vs. Sun Life Financial |
| DAX Index vs. Renesas Electronics | DAX Index vs. AIR PRODCHEMICALS | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. VIVA WINE GROUP |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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