Correlation Between DAX Index and EVS Broadcast
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By analyzing existing cross correlation between DAX Index and EVS Broadcast Equipment, you can compare the effects of market volatilities on DAX Index and EVS Broadcast 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 EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and EVS Broadcast.
Diversification Opportunities for DAX Index and EVS Broadcast
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and EVS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment 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 EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of DAX Index i.e., DAX Index and EVS Broadcast go up and down completely randomly.
Pair Corralation between DAX Index and EVS Broadcast
Assuming the 90 days trading horizon DAX Index is expected to under-perform the EVS Broadcast. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.51 times less risky than EVS Broadcast. The index trades about -0.03 of its potential returns per unit of risk. The EVS Broadcast Equipment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,864 in EVS Broadcast Equipment on August 28, 2024 and sell it today you would earn a total of 61.00 from holding EVS Broadcast Equipment or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. EVS Broadcast Equipment
Performance |
| Timeline |
DAX Index and EVS Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
EVS Broadcast Equipment
Pair trading matchups for EVS Broadcast
Pair Trading with DAX Index and EVS Broadcast
The main advantage of trading using opposite DAX Index and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast'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 |
| EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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