Correlation Between DAX Index and ID Logistics
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By analyzing existing cross correlation between DAX Index and ID Logistics SAS, you can compare the effects of market volatilities on DAX Index and ID Logistics 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 ID Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ID Logistics.
Diversification Opportunities for DAX Index and ID Logistics
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and 1ID is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ID Logistics SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ID Logistics 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 ID Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ID Logistics SAS has no effect on the direction of DAX Index i.e., DAX Index and ID Logistics go up and down completely randomly.
Pair Corralation between DAX Index and ID Logistics
Assuming the 90 days trading horizon DAX Index is expected to generate 1.08 times less return on investment than ID Logistics. But when comparing it to its historical volatility, DAX Index is 2.18 times less risky than ID Logistics. It trades about 0.09 of its potential returns per unit of risk. ID Logistics SAS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 27,100 in ID Logistics SAS on September 22, 2024 and sell it today you would earn a total of 10,050 from holding ID Logistics SAS or generate 37.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. ID Logistics SAS
Performance |
| Timeline |
DAX Index and ID Logistics Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ID Logistics SAS
Pair trading matchups for ID Logistics
Pair Trading with DAX Index and ID Logistics
The main advantage of trading using opposite DAX Index and ID Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ID Logistics 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 ID Logistics will offset losses from the drop in ID Logistics' long position.| DAX Index vs. Tradegate AG Wertpapierhandelsbank | DAX Index vs. TRADEDOUBLER AB SK | DAX Index vs. SALESFORCE INC CDR | DAX Index vs. CENTURIA OFFICE REIT |
| ID Logistics vs. Ares Management Corp | ID Logistics vs. Merit Medical Systems | ID Logistics vs. CEOTRONICS | ID Logistics vs. SCANDMEDICAL SOLDK 040 |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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