Correlation Between DAX Index and Postal Savings
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By analyzing existing cross correlation between DAX Index and Postal Savings Bank, you can compare the effects of market volatilities on DAX Index and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Postal Savings.
Diversification Opportunities for DAX Index and Postal Savings
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Postal is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of DAX Index i.e., DAX Index and Postal Savings go up and down completely randomly.
Pair Corralation between DAX Index and Postal Savings
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Postal Savings. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.98 times less risky than Postal Savings. The index trades about -0.05 of its potential returns per unit of risk. The Postal Savings Bank is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 54.00 in Postal Savings Bank on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Postal Savings Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Postal Savings Bank
Performance |
| Timeline |
DAX Index and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Postal Savings Bank
Pair trading matchups for Postal Savings
Pair Trading with DAX Index and Postal Savings
The main advantage of trading using opposite DAX Index and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' 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 |
| Postal Savings vs. Deutsche Bank Aktiengesellschaft | Postal Savings vs. Superior Plus Corp | Postal Savings vs. NMI Holdings | Postal Savings vs. Origin Agritech |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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