Correlation Between DAX Index and TAIGA BUILDING
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By analyzing existing cross correlation between DAX Index and TAIGA BUILDING PRODS, you can compare the effects of market volatilities on DAX Index and TAIGA BUILDING 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 TAIGA BUILDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and TAIGA BUILDING.
Diversification Opportunities for DAX Index and TAIGA BUILDING
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and TAIGA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and TAIGA BUILDING PRODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAIGA BUILDING PRODS 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 TAIGA BUILDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAIGA BUILDING PRODS has no effect on the direction of DAX Index i.e., DAX Index and TAIGA BUILDING go up and down completely randomly.
Pair Corralation between DAX Index and TAIGA BUILDING
Assuming the 90 days trading horizon DAX Index is expected to generate 0.43 times more return on investment than TAIGA BUILDING. However, DAX Index is 2.33 times less risky than TAIGA BUILDING. It trades about 0.5 of its potential returns per unit of risk. TAIGA BUILDING PRODS is currently generating about -0.02 per unit of risk. If you would invest 1,903,364 in DAX Index on September 13, 2024 and sell it today you would earn a total of 136,552 from holding DAX Index or generate 7.17% 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. TAIGA BUILDING PRODS
Performance |
| Timeline |
DAX Index and TAIGA BUILDING Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
TAIGA BUILDING PRODS
Pair trading matchups for TAIGA BUILDING
Pair Trading with DAX Index and TAIGA BUILDING
The main advantage of trading using opposite DAX Index and TAIGA BUILDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, TAIGA BUILDING 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 TAIGA BUILDING will offset losses from the drop in TAIGA BUILDING's long position.| DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
| TAIGA BUILDING vs. The Home Depot | TAIGA BUILDING vs. The Home Depot | TAIGA BUILDING vs. Floor Decor Holdings | TAIGA BUILDING vs. LESLIES INC DL |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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