Correlation Between DAX Index and Philip Morris
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By analyzing existing cross correlation between DAX Index and Philip Morris International, you can compare the effects of market volatilities on DAX Index and Philip Morris 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 Philip Morris. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Philip Morris.
Diversification Opportunities for DAX Index and Philip Morris
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Philip is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Philip Morris International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philip Morris Intern 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 Philip Morris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philip Morris Intern has no effect on the direction of DAX Index i.e., DAX Index and Philip Morris go up and down completely randomly.
Pair Corralation between DAX Index and Philip Morris
Assuming the 90 days trading horizon DAX Index is expected to generate 2.27 times less return on investment than Philip Morris. But when comparing it to its historical volatility, DAX Index is 1.55 times less risky than Philip Morris. It trades about 0.07 of its potential returns per unit of risk. Philip Morris International is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,917 in Philip Morris International on September 2, 2024 and sell it today you would earn a total of 4,501 from holding Philip Morris International or generate 56.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Philip Morris International
Performance |
| Timeline |
DAX Index and Philip Morris Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Philip Morris International
Pair trading matchups for Philip Morris
Pair Trading with DAX Index and Philip Morris
The main advantage of trading using opposite DAX Index and Philip Morris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Philip Morris 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 Philip Morris will offset losses from the drop in Philip Morris' long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Philip Morris vs. American Homes 4 | Philip Morris vs. MTI WIRELESS EDGE | Philip Morris vs. NURAN WIRELESS INC | Philip Morris vs. Pick n Pay |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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