Correlation Between DAX Index and Bill Holdings
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By analyzing existing cross correlation between DAX Index and Bill Holdings, you can compare the effects of market volatilities on DAX Index and Bill Holdings 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 Bill Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Bill Holdings.
Diversification Opportunities for DAX Index and Bill Holdings
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and Bill is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Bill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Holdings 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 Bill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Holdings has no effect on the direction of DAX Index i.e., DAX Index and Bill Holdings go up and down completely randomly.
Pair Corralation between DAX Index and Bill Holdings
Assuming the 90 days trading horizon DAX Index is expected to generate 28.12 times less return on investment than Bill Holdings. But when comparing it to its historical volatility, DAX Index is 4.38 times less risky than Bill Holdings. It trades about 0.06 of its potential returns per unit of risk. Bill Holdings is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 4,743 in Bill Holdings on August 26, 2024 and sell it today you would earn a total of 3,937 from holding Bill Holdings or generate 83.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Bill Holdings
Performance |
| Timeline |
DAX Index and Bill Holdings Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Bill Holdings
Pair trading matchups for Bill Holdings
Pair Trading with DAX Index and Bill Holdings
The main advantage of trading using opposite DAX Index and Bill Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Bill Holdings 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 Bill Holdings will offset losses from the drop in Bill Holdings' long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| Bill Holdings vs. PKSHA TECHNOLOGY INC | Bill Holdings vs. GLG LIFE TECH | Bill Holdings vs. NetSol Technologies | Bill Holdings vs. INTERSHOP Communications Aktiengesellschaft |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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