Correlation Between DAX Index and Carbios
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By analyzing existing cross correlation between DAX Index and Carbios, you can compare the effects of market volatilities on DAX Index and Carbios 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 Carbios. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Carbios.
Diversification Opportunities for DAX Index and Carbios
Excellent diversification
The 3 months correlation between DAX and Carbios is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Carbios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carbios 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 Carbios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carbios has no effect on the direction of DAX Index i.e., DAX Index and Carbios go up and down completely randomly.
Pair Corralation between DAX Index and Carbios
Assuming the 90 days trading horizon DAX Index is expected to generate 0.21 times more return on investment than Carbios. However, DAX Index is 4.82 times less risky than Carbios. It trades about 0.1 of its potential returns per unit of risk. Carbios is currently generating about -0.06 per unit of risk. If you would invest 1,399,510 in DAX Index on September 14, 2024 and sell it today you would earn a total of 643,117 from holding DAX Index or generate 45.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Carbios
Performance |
| Timeline |
DAX Index and Carbios Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Carbios
Pair trading matchups for Carbios
Pair Trading with DAX Index and Carbios
The main advantage of trading using opposite DAX Index and Carbios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Carbios 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 Carbios will offset losses from the drop in Carbios' long position.| DAX Index vs. CARSALESCOM | DAX Index vs. Sumitomo Mitsui Construction | DAX Index vs. H FARM SPA | DAX Index vs. Nufarm Limited |
| Carbios vs. Harmony Gold Mining | Carbios vs. Western Copper and | Carbios vs. DISTRICT METALS | Carbios vs. MCEWEN MINING INC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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