Correlation Between DAX Index and Apple
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By analyzing existing cross correlation between DAX Index and Apple Inc, you can compare the effects of market volatilities on DAX Index and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Apple.
Diversification Opportunities for DAX Index and Apple
Poor diversification
The 3 months correlation between DAX and Apple is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of DAX Index i.e., DAX Index and Apple go up and down completely randomly.
Pair Corralation between DAX Index and Apple
Assuming the 90 days trading horizon DAX Index is expected to generate 1.63 times less return on investment than Apple. But when comparing it to its historical volatility, DAX Index is 1.93 times less risky than Apple. It trades about 0.08 of its potential returns per unit of risk. Apple Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 16,424 in Apple Inc on August 31, 2024 and sell it today you would earn a total of 6,026 from holding Apple Inc or generate 36.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Apple Inc
Performance |
| Timeline |
DAX Index and Apple Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Apple Inc
Pair trading matchups for Apple
Pair Trading with DAX Index and Apple
The main advantage of trading using opposite DAX Index and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| Apple vs. SIVERS SEMICONDUCTORS AB | Apple vs. Darden Restaurants | Apple vs. Reliance Steel Aluminum | Apple vs. Q2M Managementberatung AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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