Correlation Between DAX Index and TAT HONG
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By analyzing existing cross correlation between DAX Index and TAT HONG EQSRV, you can compare the effects of market volatilities on DAX Index and TAT HONG 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 TAT HONG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and TAT HONG.
Diversification Opportunities for DAX Index and TAT HONG
Very good diversification
The 3 months correlation between DAX and TAT is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and TAT HONG EQSRV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAT HONG EQSRV 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 TAT HONG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAT HONG EQSRV has no effect on the direction of DAX Index i.e., DAX Index and TAT HONG go up and down completely randomly.
Pair Corralation between DAX Index and TAT HONG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.24 times more return on investment than TAT HONG. However, DAX Index is 4.14 times less risky than TAT HONG. It trades about 0.27 of its potential returns per unit of risk. TAT HONG EQSRV is currently generating about -0.07 per unit of risk. If you would invest 2,128,218 in DAX Index on November 28, 2024 and sell it today you would earn a total of 112,809 from holding DAX Index or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. TAT HONG EQSRV
Performance |
| Timeline |
DAX Index and TAT HONG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
TAT HONG EQSRV
Pair trading matchups for TAT HONG
Pair Trading with DAX Index and TAT HONG
The main advantage of trading using opposite DAX Index and TAT HONG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, TAT HONG 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 TAT HONG will offset losses from the drop in TAT HONG's long position.| DAX Index vs. TRAVEL LEISURE DL 01 | DAX Index vs. COLUMBIA SPORTSWEAR | DAX Index vs. InPlay Oil Corp | DAX Index vs. MAVEN WIRELESS SWEDEN |
| TAT HONG vs. Richardson Electronics | TAT HONG vs. Arrow Electronics | TAT HONG vs. STMICROELECTRONICS | TAT HONG vs. ePlay Digital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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