Correlation Between DAX Index and ALTER NRG
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By analyzing existing cross correlation between DAX Index and ALTER NRG, you can compare the effects of market volatilities on DAX Index and ALTER NRG 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 ALTER NRG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ALTER NRG.
Diversification Opportunities for DAX Index and ALTER NRG
Very good diversification
The 3 months correlation between DAX and ALTER is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ALTER NRG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTER NRG 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 ALTER NRG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTER NRG has no effect on the direction of DAX Index i.e., DAX Index and ALTER NRG go up and down completely randomly.
Pair Corralation between DAX Index and ALTER NRG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.31 times more return on investment than ALTER NRG. However, DAX Index is 3.2 times less risky than ALTER NRG. It trades about 0.16 of its potential returns per unit of risk. ALTER NRG is currently generating about -0.12 per unit of risk. If you would invest 1,857,650 in DAX Index on September 5, 2024 and sell it today you would earn a total of 165,564 from holding DAX Index or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
DAX Index vs. ALTER NRG
Performance |
| Timeline |
DAX Index and ALTER NRG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ALTER NRG
Pair trading matchups for ALTER NRG
Pair Trading with DAX Index and ALTER NRG
The main advantage of trading using opposite DAX Index and ALTER NRG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ALTER NRG 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 ALTER NRG will offset losses from the drop in ALTER NRG's long position.| DAX Index vs. Hochschild Mining plc | DAX Index vs. Ming Le Sports | DAX Index vs. PLAYSTUDIOS A DL 0001 | DAX Index vs. USWE SPORTS AB |
| ALTER NRG vs. Verizon Communications | ALTER NRG vs. Harmony Gold Mining | ALTER NRG vs. LION ONE METALS | ALTER NRG vs. Zoom Video Communications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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