Correlation Between DAX Index and CHUGOKU EL
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By analyzing existing cross correlation between DAX Index and CHUGOKU EL PWR, you can compare the effects of market volatilities on DAX Index and CHUGOKU EL 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 CHUGOKU EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CHUGOKU EL.
Diversification Opportunities for DAX Index and CHUGOKU EL
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and CHUGOKU is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CHUGOKU EL PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUGOKU EL PWR 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 CHUGOKU EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUGOKU EL PWR has no effect on the direction of DAX Index i.e., DAX Index and CHUGOKU EL go up and down completely randomly.
Pair Corralation between DAX Index and CHUGOKU EL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.37 times more return on investment than CHUGOKU EL. However, DAX Index is 2.71 times less risky than CHUGOKU EL. It trades about 0.2 of its potential returns per unit of risk. CHUGOKU EL PWR is currently generating about -0.12 per unit of risk. If you would invest 1,914,785 in DAX Index on September 4, 2024 and sell it today you would earn a total of 78,577 from holding DAX Index or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. CHUGOKU EL PWR
Performance |
| Timeline |
DAX Index and CHUGOKU EL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CHUGOKU EL PWR
Pair trading matchups for CHUGOKU EL
Pair Trading with DAX Index and CHUGOKU EL
The main advantage of trading using opposite DAX Index and CHUGOKU EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CHUGOKU EL 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 CHUGOKU EL will offset losses from the drop in CHUGOKU EL's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| CHUGOKU EL vs. ELMOS SEMICONDUCTOR | CHUGOKU EL vs. QBE Insurance Group | CHUGOKU EL vs. MagnaChip Semiconductor Corp | CHUGOKU EL vs. Elmos Semiconductor SE |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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