Correlation Between DAX Index and KOOL2PLAY
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By analyzing existing cross correlation between DAX Index and KOOL2PLAY SA ZY, you can compare the effects of market volatilities on DAX Index and KOOL2PLAY 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 KOOL2PLAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and KOOL2PLAY.
Diversification Opportunities for DAX Index and KOOL2PLAY
Very good diversification
The 3 months correlation between DAX and KOOL2PLAY is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and KOOL2PLAY SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOOL2PLAY SA ZY 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 KOOL2PLAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOOL2PLAY SA ZY has no effect on the direction of DAX Index i.e., DAX Index and KOOL2PLAY go up and down completely randomly.
Pair Corralation between DAX Index and KOOL2PLAY
Assuming the 90 days trading horizon DAX Index is expected to generate 0.11 times more return on investment than KOOL2PLAY. However, DAX Index is 8.87 times less risky than KOOL2PLAY. It trades about 0.08 of its potential returns per unit of risk. KOOL2PLAY SA ZY is currently generating about -0.05 per unit of risk. If you would invest 1,598,996 in DAX Index on August 31, 2024 and sell it today you would earn a total of 363,649 from holding DAX Index or generate 22.74% 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. KOOL2PLAY SA ZY
Performance |
| Timeline |
DAX Index and KOOL2PLAY Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
KOOL2PLAY SA ZY
Pair trading matchups for KOOL2PLAY
Pair Trading with DAX Index and KOOL2PLAY
The main advantage of trading using opposite DAX Index and KOOL2PLAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, KOOL2PLAY 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 KOOL2PLAY will offset losses from the drop in KOOL2PLAY's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| KOOL2PLAY vs. Nintendo Co | KOOL2PLAY vs. Sea Limited | KOOL2PLAY vs. Take Two Interactive Software | KOOL2PLAY 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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