Correlation Between DAX Index and FTC SOLAR
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By analyzing existing cross correlation between DAX Index and FTC SOLAR INC, you can compare the effects of market volatilities on DAX Index and FTC SOLAR 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 FTC SOLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FTC SOLAR.
Diversification Opportunities for DAX Index and FTC SOLAR
Very good diversification
The 3 months correlation between DAX and FTC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FTC SOLAR INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTC SOLAR INC 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 FTC SOLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTC SOLAR INC has no effect on the direction of DAX Index i.e., DAX Index and FTC SOLAR go up and down completely randomly.
Pair Corralation between DAX Index and FTC SOLAR
Assuming the 90 days trading horizon DAX Index is expected to generate 8.3 times less return on investment than FTC SOLAR. But when comparing it to its historical volatility, DAX Index is 23.8 times less risky than FTC SOLAR. It trades about 0.53 of its potential returns per unit of risk. FTC SOLAR INC is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 270.00 in FTC SOLAR INC on October 30, 2024 and sell it today you would earn a total of 128.00 from holding FTC SOLAR INC or generate 47.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. FTC SOLAR INC
Performance |
| Timeline |
DAX Index and FTC SOLAR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
FTC SOLAR INC
Pair trading matchups for FTC SOLAR
Pair Trading with DAX Index and FTC SOLAR
The main advantage of trading using opposite DAX Index and FTC SOLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FTC SOLAR 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 FTC SOLAR will offset losses from the drop in FTC SOLAR's long position.| DAX Index vs. Ribbon Communications | DAX Index vs. Highlight Communications AG | DAX Index vs. Cairo Communication SpA | DAX Index vs. Spirent Communications plc |
| FTC SOLAR vs. NEW MILLENNIUM IRON | FTC SOLAR vs. Hemisphere Energy Corp | FTC SOLAR vs. Olympic Steel | FTC SOLAR vs. Tianjin Capital Environmental |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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