Correlation Between DAX Index and Owens Minor
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By analyzing existing cross correlation between DAX Index and Owens Minor, you can compare the effects of market volatilities on DAX Index and Owens Minor 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 Owens Minor. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Owens Minor.
Diversification Opportunities for DAX Index and Owens Minor
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Owens is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Owens Minor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owens Minor 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 Owens Minor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owens Minor has no effect on the direction of DAX Index i.e., DAX Index and Owens Minor go up and down completely randomly.
Pair Corralation between DAX Index and Owens Minor
Assuming the 90 days trading horizon DAX Index is expected to generate 2.29 times less return on investment than Owens Minor. But when comparing it to its historical volatility, DAX Index is 4.12 times less risky than Owens Minor. It trades about 0.54 of its potential returns per unit of risk. Owens Minor is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Owens Minor on October 25, 2024 and sell it today you would earn a total of 180.00 from holding Owens Minor or generate 14.52% 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. Owens Minor
Performance |
| Timeline |
DAX Index and Owens Minor Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Owens Minor
Pair trading matchups for Owens Minor
Pair Trading with DAX Index and Owens Minor
The main advantage of trading using opposite DAX Index and Owens Minor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Owens Minor 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 Owens Minor will offset losses from the drop in Owens Minor's long position.| DAX Index vs. Retail Estates NV | DAX Index vs. AEON STORES | DAX Index vs. BJs Wholesale Club | DAX Index vs. Nanjing Panda Electronics |
| Owens Minor vs. SOGECLAIR SA INH | Owens Minor vs. Delta Air Lines | Owens Minor vs. Altair Engineering | Owens Minor vs. ALTAIR RES 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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