Correlation Between DAX Index and JD HEALTH
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By analyzing existing cross correlation between DAX Index and JD HEALTH INTL, you can compare the effects of market volatilities on DAX Index and JD HEALTH 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 JD HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and JD HEALTH.
Diversification Opportunities for DAX Index and JD HEALTH
Poor diversification
The 3 months correlation between DAX and 8ZN is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and JD HEALTH INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD HEALTH INTL 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 JD HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD HEALTH INTL has no effect on the direction of DAX Index i.e., DAX Index and JD HEALTH go up and down completely randomly.
Pair Corralation between DAX Index and JD HEALTH
Assuming the 90 days trading horizon DAX Index is expected to generate 0.32 times more return on investment than JD HEALTH. However, DAX Index is 3.12 times less risky than JD HEALTH. It trades about -0.05 of its potential returns per unit of risk. JD HEALTH INTL is currently generating about -0.07 per unit of risk. If you would invest 1,953,162 in DAX Index on August 27, 2024 and sell it today you would lose (20,903) from holding DAX Index or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. JD HEALTH INTL
Performance |
| Timeline |
DAX Index and JD HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
JD HEALTH INTL
Pair trading matchups for JD HEALTH
Pair Trading with DAX Index and JD HEALTH
The main advantage of trading using opposite DAX Index and JD HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, JD HEALTH 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 JD HEALTH will offset losses from the drop in JD HEALTH's long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| JD HEALTH vs. Option Care Health | JD HEALTH vs. HYGEIA HC HLDGS | JD HEALTH vs. Superior Plus Corp | JD HEALTH vs. Origin Agritech |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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