Correlation Between DAX Index and Accent Resources
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By analyzing existing cross correlation between DAX Index and Accent Resources NL, you can compare the effects of market volatilities on DAX Index and Accent Resources 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 Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Accent Resources.
Diversification Opportunities for DAX Index and Accent Resources
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Accent is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources 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 Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of DAX Index i.e., DAX Index and Accent Resources go up and down completely randomly.
Pair Corralation between DAX Index and Accent Resources
Assuming the 90 days trading horizon DAX Index is expected to generate 124.55 times less return on investment than Accent Resources. But when comparing it to its historical volatility, DAX Index is 108.36 times less risky than Accent Resources. It trades about 0.1 of its potential returns per unit of risk. Accent Resources NL is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Accent Resources NL on September 13, 2024 and sell it today you would earn a total of 1.55 from holding Accent Resources NL or generate 1033.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Accent Resources NL
Performance |
| Timeline |
DAX Index and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Accent Resources NL
Pair trading matchups for Accent Resources
Pair Trading with DAX Index and Accent Resources
The main advantage of trading using opposite DAX Index and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
| Accent Resources vs. FORWARD AIR P | Accent Resources vs. Merit Medical Systems | Accent Resources vs. Norwegian Air Shuttle | Accent Resources vs. Clearside Biomedical |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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