Correlation Between TOREX SEMICONDUCTOR and DAX Index
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By analyzing existing cross correlation between TOREX SEMICONDUCTOR LTD and DAX Index, you can compare the effects of market volatilities on TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOREX SEMICONDUCTOR and DAX Index.
Diversification Opportunities for TOREX SEMICONDUCTOR and DAX Index
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TOREX and DAX is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding TOREX SEMICONDUCTOR LTD and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR i.e., TOREX SEMICONDUCTOR and DAX Index go up and down completely randomly.
Pair Corralation between TOREX SEMICONDUCTOR and DAX Index
Assuming the 90 days horizon TOREX SEMICONDUCTOR LTD is expected to under-perform the DAX Index. In addition to that, TOREX SEMICONDUCTOR is 4.27 times more volatile than DAX Index. It trades about -0.01 of its total potential returns per unit of risk. DAX Index is currently generating about 0.59 per unit of volatility. If you would invest 2,002,466 in DAX Index on November 3, 2024 and sell it today you would earn a total of 170,739 from holding DAX Index or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOREX SEMICONDUCTOR LTD vs. DAX Index
Performance |
| Timeline |
TOREX SEMICONDUCTOR and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
TOREX SEMICONDUCTOR LTD
Pair trading matchups for TOREX SEMICONDUCTOR
DAX Index
Pair trading matchups for DAX Index
Pair Trading with TOREX SEMICONDUCTOR and DAX Index
The main advantage of trading using opposite TOREX SEMICONDUCTOR and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOREX SEMICONDUCTOR 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.| TOREX SEMICONDUCTOR vs. CARDINAL HEALTH | TOREX SEMICONDUCTOR vs. Cardinal Health | TOREX SEMICONDUCTOR vs. HEALTHSTREAM | TOREX SEMICONDUCTOR vs. PURETECH HEALTH PLC |
| DAX Index vs. ANTA SPORTS PRODUCT | DAX Index vs. SCIENCE IN SPORT | DAX Index vs. Columbia Sportswear | DAX Index vs. Pebblebrook Hotel Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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