Correlation Between DAX Index and China Railway
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By analyzing existing cross correlation between DAX Index and China Railway Construction, you can compare the effects of market volatilities on DAX Index and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and China Railway.
Diversification Opportunities for DAX Index and China Railway
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DAX and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of DAX Index i.e., DAX Index and China Railway go up and down completely randomly.
Pair Corralation between DAX Index and China Railway
If you would invest 2,143,058 in DAX Index on November 29, 2024 and sell it today you would earn a total of 112,031 from holding DAX Index or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. China Railway Construction
Performance |
| Timeline |
DAX Index and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
China Railway Construction
Pair trading matchups for China Railway
Pair Trading with DAX Index and China Railway
The main advantage of trading using opposite DAX Index and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| DAX Index vs. BOSTON BEER A | DAX Index vs. JSC Halyk bank | DAX Index vs. Fevertree Drinks PLC | DAX Index vs. Tsingtao Brewery |
| China Railway vs. Eastman Chemical | China Railway vs. Playtech plc | China Railway vs. Uber Technologies | China Railway vs. TIANDE CHEMICAL |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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