Correlation Between DAX Index and CGN Power
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By analyzing existing cross correlation between DAX Index and CGN Power Co, you can compare the effects of market volatilities on DAX Index and CGN Power 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 CGN Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CGN Power.
Diversification Opportunities for DAX Index and CGN Power
Pay attention - limited upside
The 3 months correlation between DAX and CGN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CGN Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Power 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 CGN Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Power has no effect on the direction of DAX Index i.e., DAX Index and CGN Power go up and down completely randomly.
Pair Corralation between DAX Index and CGN Power
If you would invest 2,143,058 in DAX Index on November 29, 2024 and sell it today you would earn a total of 112,031 from holding DAX Index or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. CGN Power Co
Performance |
| Timeline |
DAX Index and CGN Power Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CGN Power Co
Pair trading matchups for CGN Power
Pair Trading with DAX Index and CGN Power
The main advantage of trading using opposite DAX Index and CGN Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CGN Power 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 CGN Power will offset losses from the drop in CGN Power's long position.| DAX Index vs. BOSTON BEER A | DAX Index vs. JSC Halyk bank | DAX Index vs. Fevertree Drinks PLC | DAX Index vs. Tsingtao Brewery |
| CGN Power vs. ScanSource | CGN Power vs. SCANSOURCE | CGN Power vs. DETALION GAMES SA | CGN Power vs. Magnachip Semiconductor |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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