Correlation Between DAX Index and MPH Health
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By analyzing existing cross correlation between DAX Index and MPH Health Care, you can compare the effects of market volatilities on DAX Index and MPH 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 MPH Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and MPH Health.
Diversification Opportunities for DAX Index and MPH Health
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and MPH is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and MPH Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPH Health Care 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 MPH Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPH Health Care has no effect on the direction of DAX Index i.e., DAX Index and MPH Health go up and down completely randomly.
Pair Corralation between DAX Index and MPH Health
Assuming the 90 days trading horizon DAX Index is expected to generate 1.69 times less return on investment than MPH Health. But when comparing it to its historical volatility, DAX Index is 3.26 times less risky than MPH Health. It trades about 0.09 of its potential returns per unit of risk. MPH Health Care is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,538 in MPH Health Care on October 26, 2024 and sell it today you would earn a total of 822.00 from holding MPH Health Care or generate 53.45% 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. MPH Health Care
Performance |
| Timeline |
DAX Index and MPH Health Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
MPH Health Care
Pair trading matchups for MPH Health
Pair Trading with DAX Index and MPH Health
The main advantage of trading using opposite DAX Index and MPH Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, MPH 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 MPH Health will offset losses from the drop in MPH Health's long position.| DAX Index vs. Q2M Managementberatung AG | DAX Index vs. Cleanaway Waste Management | DAX Index vs. Fukuyama Transporting Co | DAX Index vs. Ares Management Corp |
| MPH Health vs. ON SEMICONDUCTOR | MPH Health vs. Semiconductor Manufacturing International | MPH Health vs. TOREX SEMICONDUCTOR LTD | MPH Health vs. Yuexiu Transport Infrastructure |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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