Correlation Between DAX Index and SILEON AB
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By analyzing existing cross correlation between DAX Index and SILEON AB ON, you can compare the effects of market volatilities on DAX Index and SILEON AB 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 SILEON AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SILEON AB.
Diversification Opportunities for DAX Index and SILEON AB
Good diversification
The 3 months correlation between DAX and SILEON is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SILEON AB ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SILEON AB ON 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 SILEON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SILEON AB ON has no effect on the direction of DAX Index i.e., DAX Index and SILEON AB go up and down completely randomly.
Pair Corralation between DAX Index and SILEON AB
Assuming the 90 days trading horizon DAX Index is expected to generate 932.65 times less return on investment than SILEON AB. But when comparing it to its historical volatility, DAX Index is 313.4 times less risky than SILEON AB. It trades about 0.08 of its potential returns per unit of risk. SILEON AB ON is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,635 in SILEON AB ON on October 14, 2024 and sell it today you would lose (1,599) from holding SILEON AB ON or give up 97.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. SILEON AB ON
Performance |
| Timeline |
DAX Index and SILEON AB Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SILEON AB ON
Pair trading matchups for SILEON AB
Pair Trading with DAX Index and SILEON AB
The main advantage of trading using opposite DAX Index and SILEON AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SILEON AB 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 SILEON AB will offset losses from the drop in SILEON AB's long position.| DAX Index vs. CAIRN HOMES EO | DAX Index vs. Forsys Metals Corp | DAX Index vs. Taylor Morrison Home | DAX Index vs. Hisense Home Appliances |
| SILEON AB vs. Microsoft | SILEON AB vs. CrowdStrike Holdings | SILEON AB vs. KASPIKZ 1 | SILEON AB vs. Superior Plus Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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