Correlation Between DAX Index and ACL Cables
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and ACL Cables PLC, you can compare the effects of market volatilities on DAX Index and ACL Cables 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 ACL Cables. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ACL Cables.
Diversification Opportunities for DAX Index and ACL Cables
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DAX and ACL is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ACL Cables PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Cables PLC 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 ACL Cables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Cables PLC has no effect on the direction of DAX Index i.e., DAX Index and ACL Cables go up and down completely randomly.
Pair Corralation between DAX Index and ACL Cables
Assuming the 90 days trading horizon DAX Index is expected to generate 0.51 times more return on investment than ACL Cables. However, DAX Index is 1.95 times less risky than ACL Cables. It trades about 0.33 of its potential returns per unit of risk. ACL Cables PLC is currently generating about -0.05 per unit of risk. If you would invest 2,128,218 in DAX Index on November 28, 2024 and sell it today you would earn a total of 151,193 from holding DAX Index or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 86.96% |
| Values | Daily Returns |
DAX Index vs. ACL Cables PLC
Performance |
| Timeline |
DAX Index and ACL Cables Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ACL Cables PLC
Pair trading matchups for ACL Cables
Pair Trading with DAX Index and ACL Cables
The main advantage of trading using opposite DAX Index and ACL Cables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ACL Cables 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 ACL Cables will offset losses from the drop in ACL Cables' long position.| DAX Index vs. TRAVEL LEISURE DL 01 | DAX Index vs. COLUMBIA SPORTSWEAR | DAX Index vs. InPlay Oil Corp | DAX Index vs. MAVEN WIRELESS SWEDEN |
| ACL Cables vs. Softlogic Life Insurance | ACL Cables vs. Arpico Insurance | ACL Cables vs. CEYLINCO INSURANCE PLC | ACL Cables vs. Ceylinco Insurance PLC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |