Correlation Between DAX Index and NISSHA
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By analyzing existing cross correlation between DAX Index and NISSHA LTD, you can compare the effects of market volatilities on DAX Index and NISSHA 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 NISSHA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and NISSHA.
Diversification Opportunities for DAX Index and NISSHA
Excellent diversification
The 3 months correlation between DAX and NISSHA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NISSHA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISSHA LTD 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 NISSHA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISSHA LTD has no effect on the direction of DAX Index i.e., DAX Index and NISSHA go up and down completely randomly.
Pair Corralation between DAX Index and NISSHA
Assuming the 90 days trading horizon DAX Index is expected to generate 0.37 times more return on investment than NISSHA. However, DAX Index is 2.72 times less risky than NISSHA. It trades about 0.08 of its potential returns per unit of risk. NISSHA LTD is currently generating about -0.01 per unit of risk. If you would invest 1,449,789 in DAX Index on September 3, 2024 and sell it today you would earn a total of 512,856 from holding DAX Index or generate 35.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. NISSHA LTD
Performance |
| Timeline |
DAX Index and NISSHA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
NISSHA LTD
Pair trading matchups for NISSHA
Pair Trading with DAX Index and NISSHA
The main advantage of trading using opposite DAX Index and NISSHA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, NISSHA 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 NISSHA will offset losses from the drop in NISSHA's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| NISSHA vs. CompuGroup Medical SE | NISSHA vs. SAFETY MEDICAL PROD | NISSHA vs. Compugroup Medical SE | NISSHA vs. Retail Estates NV |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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