Correlation Between DAX Index and AM EAGLE
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By analyzing existing cross correlation between DAX Index and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on DAX Index and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and AM EAGLE.
Diversification Opportunities for DAX Index and AM EAGLE
Very weak diversification
The 3 months correlation between DAX and AFG is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of DAX Index i.e., DAX Index and AM EAGLE go up and down completely randomly.
Pair Corralation between DAX Index and AM EAGLE
Assuming the 90 days trading horizon DAX Index is expected to generate 0.35 times more return on investment than AM EAGLE. However, DAX Index is 2.86 times less risky than AM EAGLE. It trades about -0.05 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about -0.1 per unit of risk. If you would invest 1,947,807 in DAX Index on August 30, 2024 and sell it today you would lose (21,632) from holding DAX Index or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
DAX Index and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
AM EAGLE OUTFITTERS
Pair trading matchups for AM EAGLE
Pair Trading with DAX Index and AM EAGLE
The main advantage of trading using opposite DAX Index and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| AM EAGLE vs. Apple Inc | AM EAGLE vs. Apple Inc | AM EAGLE vs. Superior Plus Corp | AM EAGLE vs. SIVERS SEMICONDUCTORS AB |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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