Correlation Between DAX Index and WUXI BIOLOGICS
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By analyzing existing cross correlation between DAX Index and WUXI BIOLOGICS 00000083, you can compare the effects of market volatilities on DAX Index and WUXI BIOLOGICS 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 WUXI BIOLOGICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and WUXI BIOLOGICS.
Diversification Opportunities for DAX Index and WUXI BIOLOGICS
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and WUXI is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and WUXI BIOLOGICS 00000083 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WUXI BIOLOGICS 00000083 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 WUXI BIOLOGICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WUXI BIOLOGICS 00000083 has no effect on the direction of DAX Index i.e., DAX Index and WUXI BIOLOGICS go up and down completely randomly.
Pair Corralation between DAX Index and WUXI BIOLOGICS
Assuming the 90 days trading horizon DAX Index is expected to generate 0.15 times more return on investment than WUXI BIOLOGICS. However, DAX Index is 6.86 times less risky than WUXI BIOLOGICS. It trades about -0.01 of its potential returns per unit of risk. WUXI BIOLOGICS 00000083 is currently generating about -0.01 per unit of risk. If you would invest 1,932,493 in DAX Index on August 30, 2024 and sell it today you would lose (6,318) from holding DAX Index or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. WUXI BIOLOGICS 00000083
Performance |
| Timeline |
DAX Index and WUXI BIOLOGICS Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
WUXI BIOLOGICS 00000083
Pair trading matchups for WUXI BIOLOGICS
Pair Trading with DAX Index and WUXI BIOLOGICS
The main advantage of trading using opposite DAX Index and WUXI BIOLOGICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, WUXI BIOLOGICS 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 WUXI BIOLOGICS will offset losses from the drop in WUXI BIOLOGICS's long position.| DAX Index vs. NEWELL RUBBERMAID | DAX Index vs. APPLIED MATERIALS | DAX Index vs. Compagnie Plastic Omnium | DAX Index vs. Vulcan Materials |
| WUXI BIOLOGICS vs. Zoom Video Communications | WUXI BIOLOGICS vs. Cogent Communications Holdings | WUXI BIOLOGICS vs. COMPUTERSHARE | WUXI BIOLOGICS vs. Charter Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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