Correlation Between DAX Index and KAGA EL
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By analyzing existing cross correlation between DAX Index and KAGA EL LTD, you can compare the effects of market volatilities on DAX Index and KAGA EL 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 KAGA EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and KAGA EL.
Diversification Opportunities for DAX Index and KAGA EL
Very weak diversification
The 3 months correlation between DAX and KAGA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and KAGA EL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAGA EL LTD 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 KAGA EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAGA EL LTD has no effect on the direction of DAX Index i.e., DAX Index and KAGA EL go up and down completely randomly.
Pair Corralation between DAX Index and KAGA EL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.39 times more return on investment than KAGA EL. However, DAX Index is 2.57 times less risky than KAGA EL. It trades about 0.08 of its potential returns per unit of risk. KAGA EL LTD is currently generating about 0.03 per unit of risk. If you would invest 1,461,002 in DAX Index on August 28, 2024 and sell it today you would earn a total of 479,518 from holding DAX Index or generate 32.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
DAX Index vs. KAGA EL LTD
Performance |
| Timeline |
DAX Index and KAGA EL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
KAGA EL LTD
Pair trading matchups for KAGA EL
Pair Trading with DAX Index and KAGA EL
The main advantage of trading using opposite DAX Index and KAGA EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, KAGA EL 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 KAGA EL will offset losses from the drop in KAGA EL's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| KAGA EL vs. Dairy Farm International | KAGA EL vs. AUSNUTRIA DAIRY | KAGA EL vs. PT Indofood Sukses | KAGA EL vs. SENECA FOODS A |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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