Correlation Between DAX Index and CN MODERN
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By analyzing existing cross correlation between DAX Index and CN MODERN DAIRY, you can compare the effects of market volatilities on DAX Index and CN MODERN 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 DAX Index with a short position of CN MODERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CN MODERN.
Diversification Opportunities for DAX Index and CN MODERN
Poor diversification
The 3 months correlation between DAX and 07M is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CN MODERN DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN MODERN DAIRY and DAX Index 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 DAX Index are associated (or correlated) with CN MODERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN MODERN DAIRY has no effect on the direction of DAX Index i.e., DAX Index and CN MODERN go up and down completely randomly.
Pair Corralation between DAX Index and CN MODERN
Assuming the 90 days trading horizon DAX Index is expected to generate 0.33 times more return on investment than CN MODERN. However, DAX Index is 3.04 times less risky than CN MODERN. It trades about 0.08 of its potential returns per unit of risk. CN MODERN DAIRY is currently generating about 0.01 per unit of risk. If you would invest 1,598,996 in DAX Index on August 31, 2024 and sell it today you would earn a total of 363,649 from holding DAX Index or generate 22.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. CN MODERN DAIRY
Performance |
| Timeline |
DAX Index and CN MODERN Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CN MODERN DAIRY
Pair trading matchups for CN MODERN
Pair Trading with DAX Index and CN MODERN
The main advantage of trading using opposite DAX Index and CN MODERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CN MODERN 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 CN MODERN will offset losses from the drop in CN MODERN's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| CN MODERN vs. SIVERS SEMICONDUCTORS AB | CN MODERN vs. Darden Restaurants | CN MODERN vs. Reliance Steel Aluminum | CN MODERN vs. Q2M Managementberatung AG |
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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