Correlation Between DAX Index and Aberdeen Global
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By analyzing existing cross correlation between DAX Index and Aberdeen Global Asia, you can compare the effects of market volatilities on DAX Index and Aberdeen Global 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Aberdeen Global.
Diversification Opportunities for DAX Index and Aberdeen Global
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Aberdeen is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Aberdeen Global Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Asia 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 Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Asia has no effect on the direction of DAX Index i.e., DAX Index and Aberdeen Global go up and down completely randomly.
Pair Corralation between DAX Index and Aberdeen Global
Assuming the 90 days trading horizon DAX Index is expected to generate 0.76 times more return on investment than Aberdeen Global. However, DAX Index is 1.31 times less risky than Aberdeen Global. It trades about 0.16 of its potential returns per unit of risk. Aberdeen Global Asia is currently generating about 0.03 per unit of risk. If you would invest 1,832,067 in DAX Index on October 26, 2024 and sell it today you would earn a total of 309,086 from holding DAX Index or generate 16.87% 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. Aberdeen Global Asia
Performance |
| Timeline |
DAX Index and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Aberdeen Global Asia
Pair trading matchups for Aberdeen Global
Pair Trading with DAX Index and Aberdeen Global
The main advantage of trading using opposite DAX Index and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| DAX Index vs. Xenia Hotels Resorts | DAX Index vs. HYATT HOTELS A | DAX Index vs. Hyatt Hotels | DAX Index vs. Park Hotels Resorts |
| Aberdeen Global vs. Esfera Robotics R | Aberdeen Global vs. R co Valor F | Aberdeen Global vs. CM AM Monplus NE | Aberdeen Global vs. IE00B0H4TS55 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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