Correlation Between DAX Index and Air Liquide
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By analyzing existing cross correlation between DAX Index and Air Liquide SA, you can compare the effects of market volatilities on DAX Index and Air Liquide 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 Air Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Air Liquide.
Diversification Opportunities for DAX Index and Air Liquide
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and Air is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Air Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Liquide SA 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 Air Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Liquide SA has no effect on the direction of DAX Index i.e., DAX Index and Air Liquide go up and down completely randomly.
Pair Corralation between DAX Index and Air Liquide
Assuming the 90 days trading horizon DAX Index is expected to generate 0.73 times more return on investment than Air Liquide. However, DAX Index is 1.37 times less risky than Air Liquide. It trades about 0.08 of its potential returns per unit of risk. Air Liquide SA is currently generating about 0.05 per unit of risk. If you would invest 1,444,761 in DAX Index on August 25, 2024 and sell it today you would earn a total of 487,498 from holding DAX Index or generate 33.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. Air Liquide SA
Performance |
| Timeline |
DAX Index and Air Liquide Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Air Liquide SA
Pair trading matchups for Air Liquide
Pair Trading with DAX Index and Air Liquide
The main advantage of trading using opposite DAX Index and Air Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Air Liquide 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 Air Liquide will offset losses from the drop in Air Liquide's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| Air Liquide vs. CN MODERN DAIRY | Air Liquide vs. CONAGRA FOODS | Air Liquide vs. Performance Food Group | Air Liquide vs. MARKET VECTR RETAIL |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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