Correlation Between DAX Index and Check Cap
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By analyzing existing cross correlation between DAX Index and Check Cap, you can compare the effects of market volatilities on DAX Index and Check Cap 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 Check Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Check Cap.
Diversification Opportunities for DAX Index and Check Cap
Excellent diversification
The 3 months correlation between DAX and Check is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Check Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Cap 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 Check Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Cap has no effect on the direction of DAX Index i.e., DAX Index and Check Cap go up and down completely randomly.
Pair Corralation between DAX Index and Check Cap
Assuming the 90 days trading horizon DAX Index is expected to generate 0.14 times more return on investment than Check Cap. However, DAX Index is 7.01 times less risky than Check Cap. It trades about -0.01 of its potential returns per unit of risk. Check Cap is currently generating about -0.1 per unit of risk. If you would invest 1,932,493 in DAX Index on August 30, 2024 and sell it today you would lose (6,318) from holding DAX Index or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
DAX Index vs. Check Cap
Performance |
| Timeline |
DAX Index and Check Cap Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Check Cap
Pair trading matchups for Check Cap
Pair Trading with DAX Index and Check Cap
The main advantage of trading using opposite DAX Index and Check Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Check Cap 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 Check Cap will offset losses from the drop in Check Cap's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| Check Cap vs. SIEM OFFSHORE NEW | Check Cap vs. Spirent Communications plc | Check Cap vs. SOLSTAD OFFSHORE NK | Check Cap vs. Singapore Telecommunications Limited |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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