Correlation Between DAX Index and REGAL ASIAN
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By analyzing existing cross correlation between DAX Index and REGAL ASIAN INVESTMENTS, you can compare the effects of market volatilities on DAX Index and REGAL ASIAN 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 REGAL ASIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and REGAL ASIAN.
Diversification Opportunities for DAX Index and REGAL ASIAN
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and REGAL is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and REGAL ASIAN INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGAL ASIAN INVESTMENTS 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 REGAL ASIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGAL ASIAN INVESTMENTS has no effect on the direction of DAX Index i.e., DAX Index and REGAL ASIAN go up and down completely randomly.
Pair Corralation between DAX Index and REGAL ASIAN
Assuming the 90 days trading horizon DAX Index is expected to under-perform the REGAL ASIAN. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.5 times less risky than REGAL ASIAN. The index trades about -0.03 of its potential returns per unit of risk. The REGAL ASIAN INVESTMENTS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 129.00 in REGAL ASIAN INVESTMENTS on August 28, 2024 and sell it today you would earn a total of 3.00 from holding REGAL ASIAN INVESTMENTS or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. REGAL ASIAN INVESTMENTS
Performance |
| Timeline |
DAX Index and REGAL ASIAN Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
REGAL ASIAN INVESTMENTS
Pair trading matchups for REGAL ASIAN
Pair Trading with DAX Index and REGAL ASIAN
The main advantage of trading using opposite DAX Index and REGAL ASIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, REGAL ASIAN 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 REGAL ASIAN will offset losses from the drop in REGAL ASIAN's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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