Correlation Between DAX Index and 5TH PLANET
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By analyzing existing cross correlation between DAX Index and 5TH PLANET GAMES, you can compare the effects of market volatilities on DAX Index and 5TH PLANET 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 5TH PLANET. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and 5TH PLANET.
Diversification Opportunities for DAX Index and 5TH PLANET
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and 5TH is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and 5TH PLANET GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5TH PLANET GAMES 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 5TH PLANET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5TH PLANET GAMES has no effect on the direction of DAX Index i.e., DAX Index and 5TH PLANET go up and down completely randomly.
Pair Corralation between DAX Index and 5TH PLANET
Assuming the 90 days trading horizon DAX Index is expected to generate 8.04 times less return on investment than 5TH PLANET. But when comparing it to its historical volatility, DAX Index is 9.51 times less risky than 5TH PLANET. It trades about 0.16 of its potential returns per unit of risk. 5TH PLANET GAMES is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8.70 in 5TH PLANET GAMES on September 24, 2024 and sell it today you would earn a total of 1.30 from holding 5TH PLANET GAMES or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. 5TH PLANET GAMES
Performance |
| Timeline |
DAX Index and 5TH PLANET Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
5TH PLANET GAMES
Pair trading matchups for 5TH PLANET
Pair Trading with DAX Index and 5TH PLANET
The main advantage of trading using opposite DAX Index and 5TH PLANET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, 5TH PLANET 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 5TH PLANET will offset losses from the drop in 5TH PLANET's long position.| DAX Index vs. Universal Display | DAX Index vs. Playtech plc | DAX Index vs. Columbia Sportswear | DAX Index vs. PLAYMATES TOYS |
| 5TH PLANET vs. Harmony Gold Mining | 5TH PLANET vs. INTERSHOP Communications Aktiengesellschaft | 5TH PLANET vs. Ribbon Communications | 5TH PLANET vs. Chalice Mining Limited |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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