Correlation Between Air Transport and DAX Index
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By analyzing existing cross correlation between Air Transport Services and DAX Index, you can compare the effects of market volatilities on Air Transport 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 Air Transport with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and DAX Index.
Diversification Opportunities for Air Transport and DAX Index
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and DAX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Air Transport 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 Air Transport Services 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 Air Transport i.e., Air Transport and DAX Index go up and down completely randomly.
Pair Corralation between Air Transport and DAX Index
Assuming the 90 days horizon Air Transport is expected to generate 8.19 times less return on investment than DAX Index. In addition to that, Air Transport is 1.16 times more volatile than DAX Index. It trades about 0.06 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. DAX Index
Performance |
| Timeline |
Air Transport and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Air Transport Services
Pair trading matchups for Air Transport
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Air Transport and DAX Index
The main advantage of trading using opposite Air Transport and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport 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.| Air Transport vs. BOS BETTER ONLINE | Air Transport vs. Synovus Financial Corp | Air Transport vs. SALESFORCE INC CDR | Air Transport vs. GungHo Online Entertainment |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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