Correlation Between DAX Index and ARCHER-DANIELS MID
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By analyzing existing cross correlation between DAX Index and ARCHER DANIELS MID, you can compare the effects of market volatilities on DAX Index and ARCHER-DANIELS MID 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 ARCHER-DANIELS MID. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ARCHER-DANIELS MID.
Diversification Opportunities for DAX Index and ARCHER-DANIELS MID
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DAX and ARCHER-DANIELS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ARCHER DANIELS MID in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARCHER DANIELS MID 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 ARCHER-DANIELS MID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARCHER DANIELS MID has no effect on the direction of DAX Index i.e., DAX Index and ARCHER-DANIELS MID go up and down completely randomly.
Pair Corralation between DAX Index and ARCHER-DANIELS MID
Assuming the 90 days trading horizon DAX Index is expected to generate 0.4 times more return on investment than ARCHER-DANIELS MID. However, DAX Index is 2.48 times less risky than ARCHER-DANIELS MID. It trades about 0.33 of its potential returns per unit of risk. ARCHER DANIELS MID is currently generating about -0.02 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. ARCHER DANIELS MID
Performance |
| Timeline |
DAX Index and ARCHER-DANIELS MID Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ARCHER DANIELS MID
Pair trading matchups for ARCHER-DANIELS MID
Pair Trading with DAX Index and ARCHER-DANIELS MID
The main advantage of trading using opposite DAX Index and ARCHER-DANIELS MID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ARCHER-DANIELS MID 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 ARCHER-DANIELS MID will offset losses from the drop in ARCHER-DANIELS MID's long position.| DAX Index vs. BOSTON BEER A | DAX Index vs. JSC Halyk bank | DAX Index vs. Fevertree Drinks PLC | DAX Index vs. Tsingtao Brewery |
| ARCHER-DANIELS MID vs. AGF Management Limited | ARCHER-DANIELS MID vs. TAL Education Group | ARCHER-DANIELS MID vs. betterU Education Corp | ARCHER-DANIELS MID vs. Corporate Travel Management |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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