Correlation Between DAX Index and GUOTAI JUNAN
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By analyzing existing cross correlation between DAX Index and GUOTAI JUNAN SEC, you can compare the effects of market volatilities on DAX Index and GUOTAI JUNAN 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 GUOTAI JUNAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and GUOTAI JUNAN.
Diversification Opportunities for DAX Index and GUOTAI JUNAN
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and GUOTAI is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and GUOTAI JUNAN SEC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOTAI JUNAN SEC 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 GUOTAI JUNAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOTAI JUNAN SEC has no effect on the direction of DAX Index i.e., DAX Index and GUOTAI JUNAN go up and down completely randomly.
Pair Corralation between DAX Index and GUOTAI JUNAN
Assuming the 90 days trading horizon DAX Index is expected to generate 8.07 times less return on investment than GUOTAI JUNAN. But when comparing it to its historical volatility, DAX Index is 7.61 times less risky than GUOTAI JUNAN. It trades about 0.09 of its potential returns per unit of risk. GUOTAI JUNAN SEC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 47.00 in GUOTAI JUNAN SEC on August 27, 2024 and sell it today you would earn a total of 90.00 from holding GUOTAI JUNAN SEC or generate 191.49% 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. GUOTAI JUNAN SEC
Performance |
| Timeline |
DAX Index and GUOTAI JUNAN Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
GUOTAI JUNAN SEC
Pair trading matchups for GUOTAI JUNAN
Pair Trading with DAX Index and GUOTAI JUNAN
The main advantage of trading using opposite DAX Index and GUOTAI JUNAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, GUOTAI JUNAN 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 GUOTAI JUNAN will offset losses from the drop in GUOTAI JUNAN's long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| GUOTAI JUNAN vs. MeVis Medical Solutions | GUOTAI JUNAN vs. ITALIAN WINE BRANDS | GUOTAI JUNAN vs. SCANDMEDICAL SOLDK 040 | GUOTAI JUNAN vs. United Natural Foods |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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