Correlation Between DAX Index and PLATO GOLD
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By analyzing existing cross correlation between DAX Index and PLATO GOLD P, you can compare the effects of market volatilities on DAX Index and PLATO GOLD 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 PLATO GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PLATO GOLD.
Diversification Opportunities for DAX Index and PLATO GOLD
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and PLATO is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PLATO GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLATO GOLD P 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 PLATO GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLATO GOLD P has no effect on the direction of DAX Index i.e., DAX Index and PLATO GOLD go up and down completely randomly.
Pair Corralation between DAX Index and PLATO GOLD
Assuming the 90 days trading horizon DAX Index is expected to generate 54.13 times less return on investment than PLATO GOLD. But when comparing it to its historical volatility, DAX Index is 56.59 times less risky than PLATO GOLD. It trades about 0.14 of its potential returns per unit of risk. PLATO GOLD P is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.65 in PLATO GOLD P on September 1, 2024 and sell it today you would lose (0.30) from holding PLATO GOLD P or give up 46.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. PLATO GOLD P
Performance |
Timeline |
DAX Index and PLATO GOLD Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
PLATO GOLD P
Pair trading matchups for PLATO GOLD
Pair Trading with DAX Index and PLATO GOLD
The main advantage of trading using opposite DAX Index and PLATO GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PLATO GOLD 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 PLATO GOLD will offset losses from the drop in PLATO GOLD's long position.DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
PLATO GOLD vs. ZIJIN MINH UNSPADR20 | PLATO GOLD vs. Superior Plus Corp | PLATO GOLD vs. NMI Holdings | PLATO GOLD vs. Origin Agritech |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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