Correlation Between DAX Index and Value Partners
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By analyzing existing cross correlation between DAX Index and Value Partners Group, you can compare the effects of market volatilities on DAX Index and Value Partners 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 Value Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Value Partners.
Diversification Opportunities for DAX Index and Value Partners
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Value is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Value Partners Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Partners Group 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 Value Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Partners Group has no effect on the direction of DAX Index i.e., DAX Index and Value Partners go up and down completely randomly.
Pair Corralation between DAX Index and Value Partners
Assuming the 90 days trading horizon DAX Index is expected to generate 0.24 times more return on investment than Value Partners. However, DAX Index is 4.18 times less risky than Value Partners. It trades about 0.05 of its potential returns per unit of risk. Value Partners Group is currently generating about -0.1 per unit of risk. If you would invest 1,925,734 in DAX Index on August 31, 2024 and sell it today you would earn a total of 16,839 from holding DAX Index or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Value Partners Group
Performance |
| Timeline |
DAX Index and Value Partners Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Value Partners Group
Pair trading matchups for Value Partners
Pair Trading with DAX Index and Value Partners
The main advantage of trading using opposite DAX Index and Value Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Value Partners 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 Value Partners will offset losses from the drop in Value Partners' long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| Value Partners vs. FUYO GENERAL LEASE | Value Partners vs. British American Tobacco | Value Partners vs. PT Global Mediacom | Value Partners vs. Dave Busters Entertainment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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