Correlation Between DAX Index and Naturhouse Health
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By analyzing existing cross correlation between DAX Index and Naturhouse Health SA, you can compare the effects of market volatilities on DAX Index and Naturhouse Health 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 Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Naturhouse Health.
Diversification Opportunities for DAX Index and Naturhouse Health
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Naturhouse is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health 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 Naturhouse Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naturhouse Health has no effect on the direction of DAX Index i.e., DAX Index and Naturhouse Health go up and down completely randomly.
Pair Corralation between DAX Index and Naturhouse Health
Assuming the 90 days trading horizon DAX Index is expected to generate 0.49 times more return on investment than Naturhouse Health. However, DAX Index is 2.03 times less risky than Naturhouse Health. It trades about 0.08 of its potential returns per unit of risk. Naturhouse Health SA is currently generating about 0.03 per unit of risk. If you would invest 1,446,020 in DAX Index on September 4, 2024 and sell it today you would earn a total of 547,342 from holding DAX Index or generate 37.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Naturhouse Health SA
Performance |
| Timeline |
DAX Index and Naturhouse Health Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Naturhouse Health SA
Pair trading matchups for Naturhouse Health
Pair Trading with DAX Index and Naturhouse Health
The main advantage of trading using opposite DAX Index and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Naturhouse Health 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 Naturhouse Health will offset losses from the drop in Naturhouse Health's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| Naturhouse Health vs. Strategic Education | Naturhouse Health vs. Australian Agricultural | Naturhouse Health vs. DAIRY FARM INTL | Naturhouse Health vs. Titan Machinery |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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