Correlation Between DAX Index and CCC SA
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By analyzing existing cross correlation between DAX Index and CCC SA, you can compare the effects of market volatilities on DAX Index and CCC 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 CCC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CCC SA.
Diversification Opportunities for DAX Index and CCC SA
Poor diversification
The 3 months correlation between DAX and CCC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CCC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC SA 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 CCC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC SA has no effect on the direction of DAX Index i.e., DAX Index and CCC SA go up and down completely randomly.
Pair Corralation between DAX Index and CCC SA
Assuming the 90 days trading horizon DAX Index is expected to generate 5.65 times less return on investment than CCC SA. But when comparing it to its historical volatility, DAX Index is 3.28 times less risky than CCC SA. It trades about 0.14 of its potential returns per unit of risk. CCC SA is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 4,006 in CCC SA on September 1, 2024 and sell it today you would earn a total of 706.00 from holding CCC SA or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. CCC SA
Performance |
| Timeline |
DAX Index and CCC SA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CCC SA
Pair trading matchups for CCC SA
Pair Trading with DAX Index and CCC SA
The main advantage of trading using opposite DAX Index and CCC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CCC 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 CCC SA will offset losses from the drop in CCC SA's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| CCC SA vs. Entravision Communications | CCC SA vs. SIEM OFFSHORE NEW | CCC SA vs. Chunghwa Telecom Co | CCC SA vs. IDP EDUCATION LTD |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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