Correlation Between DAX Index and EPlay Digital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both DAX Index and EPlay Digital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DAX Index and EPlay Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAX Index and ePlay Digital, you can compare the effects of market volatilities on DAX Index and EPlay Digital 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 EPlay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and EPlay Digital.

Diversification Opportunities for DAX Index and EPlay Digital

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between DAX and EPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ePlay Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlay Digital 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 EPlay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlay Digital has no effect on the direction of DAX Index i.e., DAX Index and EPlay Digital go up and down completely randomly.
    Optimize

Pair Corralation between DAX Index and EPlay Digital

Assuming the 90 days trading horizon DAX Index is expected to generate 273.53 times less return on investment than EPlay Digital. But when comparing it to its historical volatility, DAX Index is 143.29 times less risky than EPlay Digital. It trades about 0.08 of its potential returns per unit of risk. ePlay Digital is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  0.80  in ePlay Digital on August 28, 2024 and sell it today you would lose (0.70) from holding ePlay Digital or give up 87.5% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.79%
ValuesDaily Returns

DAX Index  vs.  ePlay Digital

 Performance 
       Timeline  

DAX Index and EPlay Digital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with DAX Index and EPlay Digital

The main advantage of trading using opposite DAX Index and EPlay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, EPlay Digital 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 EPlay Digital will offset losses from the drop in EPlay Digital's long position.
DAX Index vs. ELMOS SEMICONDUCTOR
DAX Index vs. ALTAIR RES INC
DAX Index vs. Fair Isaac Corp
DAX Index vs. Taiwan Semiconductor Manufacturing
The idea behind DAX Index and ePlay Digital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
EPlay Digital vs. EMBARK EDUCATION LTD
EPlay Digital vs. American Public Education
EPlay Digital vs. CeoTronics AG
EPlay Digital vs. STRAYER EDUCATION
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Insider Screener
Find insiders across different sectors to evaluate their impact on performance


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY