Correlation Between DAX Index and Asahi Group
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By analyzing existing cross correlation between DAX Index and Asahi Group Holdings, you can compare the effects of market volatilities on DAX Index and Asahi Group 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 Asahi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Asahi Group.
Diversification Opportunities for DAX Index and Asahi Group
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Asahi is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Asahi Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Group Holdings 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 Asahi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Group Holdings has no effect on the direction of DAX Index i.e., DAX Index and Asahi Group go up and down completely randomly.
Pair Corralation between DAX Index and Asahi Group
Assuming the 90 days trading horizon DAX Index is expected to generate 0.35 times more return on investment than Asahi Group. However, DAX Index is 2.84 times less risky than Asahi Group. It trades about 0.14 of its potential returns per unit of risk. Asahi Group Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,907,754 in DAX Index on September 1, 2024 and sell it today you would earn a total of 54,891 from holding DAX Index or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Asahi Group Holdings
Performance |
| Timeline |
DAX Index and Asahi Group Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Asahi Group Holdings
Pair trading matchups for Asahi Group
Pair Trading with DAX Index and Asahi Group
The main advantage of trading using opposite DAX Index and Asahi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Asahi Group 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 Asahi Group will offset losses from the drop in Asahi Group's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| Asahi Group vs. AOI Electronics Co | Asahi Group vs. BYD ELECTRONIC | Asahi Group vs. UMC Electronics Co | Asahi Group vs. Geely Automobile Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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