Correlation Between DAX Index and SBA Communications
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By analyzing existing cross correlation between DAX Index and SBA Communications Corp, you can compare the effects of market volatilities on DAX Index and SBA Communications 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 SBA Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SBA Communications.
Diversification Opportunities for DAX Index and SBA Communications
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and SBA is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SBA Communications Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBA Communications Corp 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 SBA Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBA Communications Corp has no effect on the direction of DAX Index i.e., DAX Index and SBA Communications go up and down completely randomly.
Pair Corralation between DAX Index and SBA Communications
Assuming the 90 days trading horizon DAX Index is expected to generate 0.41 times more return on investment than SBA Communications. However, DAX Index is 2.45 times less risky than SBA Communications. It trades about 0.66 of its potential returns per unit of risk. SBA Communications Corp is currently generating about -0.03 per unit of risk. If you would invest 1,990,608 in DAX Index on November 4, 2024 and sell it today you would earn a total of 182,597 from holding DAX Index or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. SBA Communications Corp
Performance |
| Timeline |
DAX Index and SBA Communications Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SBA Communications Corp
Pair trading matchups for SBA Communications
Pair Trading with DAX Index and SBA Communications
The main advantage of trading using opposite DAX Index and SBA Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SBA Communications 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 SBA Communications will offset losses from the drop in SBA Communications' long position.| DAX Index vs. BOS BETTER ONLINE | DAX Index vs. CODERE ONLINE LUX | DAX Index vs. Aegean Airlines SA | DAX Index vs. China Eastern Airlines |
| SBA Communications vs. TreeHouse Foods | SBA Communications vs. Gol Intelligent Airlines | SBA Communications vs. Axfood AB | SBA Communications vs. PATTIES FOODS |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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