Correlation Between DAX Index and SANOK RUBBER
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By analyzing existing cross correlation between DAX Index and SANOK RUBBER ZY, you can compare the effects of market volatilities on DAX Index and SANOK RUBBER 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 SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SANOK RUBBER.
Diversification Opportunities for DAX Index and SANOK RUBBER
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DAX and SANOK is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY 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 SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of DAX Index i.e., DAX Index and SANOK RUBBER go up and down completely randomly.
Pair Corralation between DAX Index and SANOK RUBBER
Assuming the 90 days trading horizon DAX Index is expected to generate 5.6 times less return on investment than SANOK RUBBER. But when comparing it to its historical volatility, DAX Index is 3.54 times less risky than SANOK RUBBER. It trades about 0.05 of its potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 339.00 in SANOK RUBBER ZY on September 1, 2024 and sell it today you would earn a total of 106.00 from holding SANOK RUBBER ZY or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. SANOK RUBBER ZY
Performance |
| Timeline |
DAX Index and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SANOK RUBBER ZY
Pair trading matchups for SANOK RUBBER
Pair Trading with DAX Index and SANOK RUBBER
The main advantage of trading using opposite DAX Index and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| SANOK RUBBER vs. United Utilities Group | SANOK RUBBER vs. DELTA AIR LINES | SANOK RUBBER vs. SEALED AIR | SANOK RUBBER vs. The Hanover Insurance |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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