Correlation Between DAX Index and AFFLUENT MEDICAL
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By analyzing existing cross correlation between DAX Index and AFFLUENT MEDICAL SAS, you can compare the effects of market volatilities on DAX Index and AFFLUENT MEDICAL 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 AFFLUENT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and AFFLUENT MEDICAL.
Diversification Opportunities for DAX Index and AFFLUENT MEDICAL
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DAX and AFFLUENT is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and AFFLUENT MEDICAL SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFFLUENT MEDICAL SAS 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 AFFLUENT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFFLUENT MEDICAL SAS has no effect on the direction of DAX Index i.e., DAX Index and AFFLUENT MEDICAL go up and down completely randomly.
Pair Corralation between DAX Index and AFFLUENT MEDICAL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.22 times more return on investment than AFFLUENT MEDICAL. However, DAX Index is 4.5 times less risky than AFFLUENT MEDICAL. It trades about 0.1 of its potential returns per unit of risk. AFFLUENT MEDICAL SAS is currently generating about 0.0 per unit of risk. If you would invest 1,806,821 in DAX Index on October 13, 2024 and sell it today you would earn a total of 214,658 from holding DAX Index or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. AFFLUENT MEDICAL SAS
Performance |
| Timeline |
DAX Index and AFFLUENT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
AFFLUENT MEDICAL SAS
Pair trading matchups for AFFLUENT MEDICAL
Pair Trading with DAX Index and AFFLUENT MEDICAL
The main advantage of trading using opposite DAX Index and AFFLUENT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, AFFLUENT MEDICAL 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 AFFLUENT MEDICAL will offset losses from the drop in AFFLUENT MEDICAL's long position.| DAX Index vs. Eurasia Mining Plc | DAX Index vs. URBAN OUTFITTERS | DAX Index vs. MCEWEN MINING INC | DAX Index vs. ANGLO ASIAN MINING |
| AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc | AFFLUENT MEDICAL vs. Apple Inc |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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