Correlation Between DAX Index and AXA World
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By analyzing existing cross correlation between DAX Index and AXA World Funds, you can compare the effects of market volatilities on DAX Index and AXA World 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 AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and AXA World.
Diversification Opportunities for DAX Index and AXA World
Good diversification
The 3 months correlation between DAX and AXA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and AXA World Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA World Funds 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 AXA World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA World Funds has no effect on the direction of DAX Index i.e., DAX Index and AXA World go up and down completely randomly.
Pair Corralation between DAX Index and AXA World
Assuming the 90 days trading horizon DAX Index is expected to generate 1.21 times more return on investment than AXA World. However, DAX Index is 1.21 times more volatile than AXA World Funds. It trades about 0.13 of its potential returns per unit of risk. AXA World Funds is currently generating about 0.0 per unit of risk. If you would invest 1,914,785 in DAX Index on September 3, 2024 and sell it today you would earn a total of 47,860 from holding DAX Index or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. AXA World Funds
Performance |
| Timeline |
DAX Index and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
AXA World Funds
Pair trading matchups for AXA World
Pair Trading with DAX Index and AXA World
The main advantage of trading using opposite DAX Index and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, AXA World 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 AXA World will offset losses from the drop in AXA World's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| AXA World vs. AXA World Funds | AXA World vs. AXA World Funds | AXA World vs. Esfera Robotics R | AXA World vs. R co Valor F |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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