Correlation Between DAX Index and IA FINANCIAL
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By analyzing existing cross correlation between DAX Index and IA FINANCIAL P, you can compare the effects of market volatilities on DAX Index and IA FINANCIAL 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 IA FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and IA FINANCIAL.
Diversification Opportunities for DAX Index and IA FINANCIAL
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and 1OD is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and IA FINANCIAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA FINANCIAL P 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 IA FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA FINANCIAL P has no effect on the direction of DAX Index i.e., DAX Index and IA FINANCIAL go up and down completely randomly.
Pair Corralation between DAX Index and IA FINANCIAL
Assuming the 90 days trading horizon DAX Index is expected to under-perform the IA FINANCIAL. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 3.76 times less risky than IA FINANCIAL. The index trades about -0.05 of its potential returns per unit of risk. The IA FINANCIAL P is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 7,425 in IA FINANCIAL P on August 29, 2024 and sell it today you would earn a total of 1,375 from holding IA FINANCIAL P or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. IA FINANCIAL P
Performance |
| Timeline |
DAX Index and IA FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
IA FINANCIAL P
Pair trading matchups for IA FINANCIAL
Pair Trading with DAX Index and IA FINANCIAL
The main advantage of trading using opposite DAX Index and IA FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, IA FINANCIAL 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 IA FINANCIAL will offset losses from the drop in IA FINANCIAL's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| IA FINANCIAL vs. Equitable Holdings | IA FINANCIAL vs. NN Group NV | IA FINANCIAL vs. Superior Plus Corp | IA FINANCIAL vs. NMI Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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