Correlation Between DAX Index and Moderna
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By analyzing existing cross correlation between DAX Index and Moderna, you can compare the effects of market volatilities on DAX Index and Moderna 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 Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Moderna.
Diversification Opportunities for DAX Index and Moderna
Excellent diversification
The 3 months correlation between DAX and Moderna is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna 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 Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of DAX Index i.e., DAX Index and Moderna go up and down completely randomly.
Pair Corralation between DAX Index and Moderna
Assuming the 90 days trading horizon DAX Index is expected to generate 0.21 times more return on investment than Moderna. However, DAX Index is 4.67 times less risky than Moderna. It trades about -0.05 of its potential returns per unit of risk. Moderna is currently generating about -0.21 per unit of risk. If you would invest 1,953,162 in DAX Index on August 29, 2024 and sell it today you would lose (23,564) from holding DAX Index or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Moderna
Performance |
| Timeline |
DAX Index and Moderna Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Moderna
Pair trading matchups for Moderna
Pair Trading with DAX Index and Moderna
The main advantage of trading using opposite DAX Index and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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