Correlation Between Datang International and DAX Index
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By analyzing existing cross correlation between Datang International Power and DAX Index, you can compare the effects of market volatilities on Datang International 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 Datang International with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang International and DAX Index.
Diversification Opportunities for Datang International and DAX Index
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Datang and DAX is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Datang International Power and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Datang International 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 Datang International Power 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 Datang International i.e., Datang International and DAX Index go up and down completely randomly.
Pair Corralation between Datang International and DAX Index
Assuming the 90 days horizon Datang International Power is expected to under-perform the DAX Index. In addition to that, Datang International is 4.02 times more volatile than DAX Index. It trades about -0.13 of its total potential returns per unit of risk. DAX Index is currently generating about -0.03 per unit of volatility. If you would invest 2,039,916 in DAX Index on October 12, 2024 and sell it today you would lose (8,206) from holding DAX Index or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Datang International Power vs. DAX Index
Performance |
| Timeline |
Datang International and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Datang International Power
Pair trading matchups for Datang International
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Datang International and DAX Index
The main advantage of trading using opposite Datang International and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang International 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.| Datang International vs. Chunghwa Telecom Co | Datang International vs. INDOFOOD AGRI RES | Datang International vs. Comba Telecom Systems | Datang International vs. Cairo Communication SpA |
| DAX Index vs. Eurasia Mining Plc | DAX Index vs. URBAN OUTFITTERS | DAX Index vs. MCEWEN MINING INC | DAX Index vs. ANGLO ASIAN MINING |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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