Correlation Between DAX Index and NKSJ HOLDINGS
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By analyzing existing cross correlation between DAX Index and NKSJ HOLDINGS, you can compare the effects of market volatilities on DAX Index and NKSJ HOLDINGS 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 NKSJ HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and NKSJ HOLDINGS.
Diversification Opportunities for DAX Index and NKSJ HOLDINGS
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and NKSJ is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NKSJ HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NKSJ HOLDINGS 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 NKSJ HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NKSJ HOLDINGS has no effect on the direction of DAX Index i.e., DAX Index and NKSJ HOLDINGS go up and down completely randomly.
Pair Corralation between DAX Index and NKSJ HOLDINGS
Assuming the 90 days trading horizon DAX Index is expected to generate 7.09 times less return on investment than NKSJ HOLDINGS. But when comparing it to its historical volatility, DAX Index is 3.81 times less risky than NKSJ HOLDINGS. It trades about 0.2 of its potential returns per unit of risk. NKSJ HOLDINGS is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,980 in NKSJ HOLDINGS on September 4, 2024 and sell it today you would earn a total of 600.00 from holding NKSJ HOLDINGS or generate 30.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. NKSJ HOLDINGS
Performance |
| Timeline |
DAX Index and NKSJ HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
NKSJ HOLDINGS
Pair trading matchups for NKSJ HOLDINGS
Pair Trading with DAX Index and NKSJ HOLDINGS
The main advantage of trading using opposite DAX Index and NKSJ HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, NKSJ HOLDINGS 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 NKSJ HOLDINGS will offset losses from the drop in NKSJ HOLDINGS's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| NKSJ HOLDINGS vs. ANGLER GAMING PLC | NKSJ HOLDINGS vs. Media and Games | NKSJ HOLDINGS vs. Computershare Limited | NKSJ HOLDINGS vs. GAMESTOP |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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