Correlation Between DAX Index and INPOST SA
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By analyzing existing cross correlation between DAX Index and INPOST SA EO, you can compare the effects of market volatilities on DAX Index and INPOST SA 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 INPOST SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and INPOST SA.
Diversification Opportunities for DAX Index and INPOST SA
Very weak diversification
The 3 months correlation between DAX and INPOST is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and INPOST SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPOST SA EO 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 INPOST SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPOST SA EO has no effect on the direction of DAX Index i.e., DAX Index and INPOST SA go up and down completely randomly.
Pair Corralation between DAX Index and INPOST SA
Assuming the 90 days trading horizon DAX Index is expected to generate 0.64 times more return on investment than INPOST SA. However, DAX Index is 1.55 times less risky than INPOST SA. It trades about -0.03 of its potential returns per unit of risk. INPOST SA EO is currently generating about -0.15 per unit of risk. If you would invest 1,946,359 in DAX Index on August 26, 2024 and sell it today you would lose (14,100) from holding DAX Index or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. INPOST SA EO
Performance |
| Timeline |
DAX Index and INPOST SA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
INPOST SA EO
Pair trading matchups for INPOST SA
Pair Trading with DAX Index and INPOST SA
The main advantage of trading using opposite DAX Index and INPOST SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, INPOST SA 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 INPOST SA will offset losses from the drop in INPOST SA's long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| INPOST SA vs. GameStop Corp | INPOST SA vs. GAMING FAC SA | INPOST SA vs. Media and Games | INPOST SA vs. Sporttotal AG |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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