Correlation Between DAX Index and Musti Group
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By analyzing existing cross correlation between DAX Index and Musti Group Oyj, you can compare the effects of market volatilities on DAX Index and Musti Group 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 Musti Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Musti Group.
Diversification Opportunities for DAX Index and Musti Group
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Musti is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Musti Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Musti Group Oyj 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 Musti Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Musti Group Oyj has no effect on the direction of DAX Index i.e., DAX Index and Musti Group go up and down completely randomly.
Pair Corralation between DAX Index and Musti Group
Assuming the 90 days trading horizon DAX Index is expected to generate 0.53 times more return on investment than Musti Group. However, DAX Index is 1.88 times less risky than Musti Group. It trades about 0.44 of its potential returns per unit of risk. Musti Group Oyj is currently generating about 0.03 per unit of risk. If you would invest 1,988,475 in DAX Index on October 21, 2024 and sell it today you would earn a total of 101,864 from holding DAX Index or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Musti Group Oyj
Performance |
| Timeline |
DAX Index and Musti Group Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Musti Group Oyj
Pair trading matchups for Musti Group
Pair Trading with DAX Index and Musti Group
The main advantage of trading using opposite DAX Index and Musti Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Musti Group 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 Musti Group will offset losses from the drop in Musti Group's long position.| DAX Index vs. SCIENCE IN SPORT | DAX Index vs. CAREER EDUCATION | DAX Index vs. NTG Nordic Transport | DAX Index vs. JD SPORTS FASH |
| Musti Group vs. Guidewire Software | Musti Group vs. SOFI TECHNOLOGIES | Musti Group vs. GLG LIFE TECH | Musti Group vs. AAC TECHNOLOGHLDGADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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