Correlation Between DAX Index and MidCap Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and MidCap Financial Investment, you can compare the effects of market volatilities on DAX Index and MidCap Financial 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 MidCap Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and MidCap Financial.
Diversification Opportunities for DAX Index and MidCap Financial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and MidCap is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and MidCap Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MidCap Financial Inv 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 MidCap Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MidCap Financial Inv has no effect on the direction of DAX Index i.e., DAX Index and MidCap Financial go up and down completely randomly.
Pair Corralation between DAX Index and MidCap Financial
Assuming the 90 days trading horizon DAX Index is expected to generate 0.62 times more return on investment than MidCap Financial. However, DAX Index is 1.61 times less risky than MidCap Financial. It trades about 0.58 of its potential returns per unit of risk. MidCap Financial Investment is currently generating about 0.06 per unit of risk. If you would invest 1,998,432 in DAX Index on October 26, 2024 and sell it today you would earn a total of 142,721 from holding DAX Index or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. MidCap Financial Investment
Performance |
| Timeline |
DAX Index and MidCap Financial Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
MidCap Financial Investment
Pair trading matchups for MidCap Financial
Pair Trading with DAX Index and MidCap Financial
The main advantage of trading using opposite DAX Index and MidCap Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, MidCap Financial 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 MidCap Financial will offset losses from the drop in MidCap Financial's long position.| DAX Index vs. Xenia Hotels Resorts | DAX Index vs. HYATT HOTELS A | DAX Index vs. Hyatt Hotels | DAX Index vs. Park Hotels Resorts |
| MidCap Financial vs. BII Railway Transportation | MidCap Financial vs. Gaztransport Technigaz SA | MidCap Financial vs. COPLAND ROAD CAPITAL | MidCap Financial vs. Television Broadcasts Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |