Correlation Between DAX Index and NEXON
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By analyzing existing cross correlation between DAX Index and NEXON Co, you can compare the effects of market volatilities on DAX Index and NEXON 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 NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and NEXON.
Diversification Opportunities for DAX Index and NEXON
Very good diversification
The 3 months correlation between DAX and NEXON is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON 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 NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of DAX Index i.e., DAX Index and NEXON go up and down completely randomly.
Pair Corralation between DAX Index and NEXON
Assuming the 90 days trading horizon DAX Index is expected to generate 0.25 times more return on investment than NEXON. However, DAX Index is 3.96 times less risky than NEXON. It trades about -0.05 of its potential returns per unit of risk. NEXON Co is currently generating about -0.24 per unit of risk. If you would invest 1,953,162 in DAX Index on August 29, 2024 and sell it today you would lose (23,564) from holding DAX Index or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. NEXON Co
Performance |
| Timeline |
DAX Index and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
NEXON Co
Pair trading matchups for NEXON
Pair Trading with DAX Index and NEXON
The main advantage of trading using opposite DAX Index and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| NEXON vs. STORE ELECTRONIC | NEXON vs. METHODE ELECTRONICS | NEXON vs. UET United Electronic | NEXON vs. Nucletron Electronic Aktiengesellschaft |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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