Correlation Between DAX Index and Akebia Therapeutics
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By analyzing existing cross correlation between DAX Index and Akebia Therapeutics, you can compare the effects of market volatilities on DAX Index and Akebia Therapeutics 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 Akebia Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Akebia Therapeutics.
Diversification Opportunities for DAX Index and Akebia Therapeutics
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Akebia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Akebia Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akebia Therapeutics 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 Akebia Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akebia Therapeutics has no effect on the direction of DAX Index i.e., DAX Index and Akebia Therapeutics go up and down completely randomly.
Pair Corralation between DAX Index and Akebia Therapeutics
Assuming the 90 days trading horizon DAX Index is expected to generate 0.07 times more return on investment than Akebia Therapeutics. However, DAX Index is 13.97 times less risky than Akebia Therapeutics. It trades about 0.1 of its potential returns per unit of risk. Akebia Therapeutics is currently generating about -0.1 per unit of risk. If you would invest 1,925,497 in DAX Index on September 2, 2024 and sell it today you would earn a total of 37,148 from holding DAX Index or generate 1.93% 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. Akebia Therapeutics
Performance |
| Timeline |
DAX Index and Akebia Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Akebia Therapeutics
Pair trading matchups for Akebia Therapeutics
Pair Trading with DAX Index and Akebia Therapeutics
The main advantage of trading using opposite DAX Index and Akebia Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Akebia Therapeutics 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 Akebia Therapeutics will offset losses from the drop in Akebia Therapeutics' long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Akebia Therapeutics vs. PARKEN Sport Entertainment | Akebia Therapeutics vs. Calibre Mining Corp | Akebia Therapeutics vs. Mitsui Chemicals | Akebia Therapeutics vs. MAGNUM MINING EXP |
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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