Correlation Between DAX Index and Amcor Plc
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By analyzing existing cross correlation between DAX Index and Amcor plc, you can compare the effects of market volatilities on DAX Index and Amcor Plc 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 Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Amcor Plc.
Diversification Opportunities for DAX Index and Amcor Plc
Average diversification
The 3 months correlation between DAX and Amcor is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc 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 Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of DAX Index i.e., DAX Index and Amcor Plc go up and down completely randomly.
Pair Corralation between DAX Index and Amcor Plc
Assuming the 90 days trading horizon DAX Index is expected to generate 0.6 times more return on investment than Amcor Plc. However, DAX Index is 1.66 times less risky than Amcor Plc. It trades about 0.26 of its potential returns per unit of risk. Amcor plc is currently generating about 0.11 per unit of risk. If you would invest 1,944,860 in DAX Index on September 12, 2024 and sell it today you would earn a total of 95,056 from holding DAX Index or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Amcor plc
Performance |
| Timeline |
DAX Index and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Amcor plc
Pair trading matchups for Amcor Plc
Pair Trading with DAX Index and Amcor Plc
The main advantage of trading using opposite DAX Index and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Amcor Plc vs. CeoTronics AG | Amcor Plc vs. SLR Investment Corp | Amcor Plc vs. Postal Savings Bank | Amcor Plc vs. Apollo Investment Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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