Correlation Between DAX Index and Shunfeng International
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By analyzing existing cross correlation between DAX Index and Shunfeng International Clean, you can compare the effects of market volatilities on DAX Index and Shunfeng International 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 Shunfeng International. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Shunfeng International.
Diversification Opportunities for DAX Index and Shunfeng International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Shunfeng is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Shunfeng International Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shunfeng International 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 Shunfeng International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shunfeng International has no effect on the direction of DAX Index i.e., DAX Index and Shunfeng International go up and down completely randomly.
Pair Corralation between DAX Index and Shunfeng International
Assuming the 90 days trading horizon DAX Index is expected to generate 0.16 times more return on investment than Shunfeng International. However, DAX Index is 6.12 times less risky than Shunfeng International. It trades about 0.2 of its potential returns per unit of risk. Shunfeng International Clean is currently generating about 0.03 per unit of risk. If you would invest 1,914,785 in DAX Index on September 4, 2024 and sell it today you would earn a total of 78,577 from holding DAX Index or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. Shunfeng International Clean
Performance |
| Timeline |
DAX Index and Shunfeng International Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Shunfeng International Clean
Pair trading matchups for Shunfeng International
Pair Trading with DAX Index and Shunfeng International
The main advantage of trading using opposite DAX Index and Shunfeng International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Shunfeng International 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 Shunfeng International will offset losses from the drop in Shunfeng International'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 |
| Shunfeng International vs. Superior Plus Corp | Shunfeng International vs. NMI Holdings | Shunfeng International vs. Origin Agritech | Shunfeng International vs. SIVERS SEMICONDUCTORS AB |
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.
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