Correlation Between DAX Index and ATLANTIC PETROLPF
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By analyzing existing cross correlation between DAX Index and ATLANTIC PETROLPF DK, you can compare the effects of market volatilities on DAX Index and ATLANTIC PETROLPF 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 ATLANTIC PETROLPF. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ATLANTIC PETROLPF.
Diversification Opportunities for DAX Index and ATLANTIC PETROLPF
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and ATLANTIC is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ATLANTIC PETROLPF DK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATLANTIC PETROLPF 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 ATLANTIC PETROLPF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATLANTIC PETROLPF has no effect on the direction of DAX Index i.e., DAX Index and ATLANTIC PETROLPF go up and down completely randomly.
Pair Corralation between DAX Index and ATLANTIC PETROLPF
Assuming the 90 days trading horizon DAX Index is expected to generate 2.17 times less return on investment than ATLANTIC PETROLPF. But when comparing it to its historical volatility, DAX Index is 7.07 times less risky than ATLANTIC PETROLPF. It trades about 0.12 of its potential returns per unit of risk. ATLANTIC PETROLPF DK is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 25.00 in ATLANTIC PETROLPF DK on November 28, 2024 and sell it today you would earn a total of 3.00 from holding ATLANTIC PETROLPF DK or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. ATLANTIC PETROLPF DK
Performance |
| Timeline |
DAX Index and ATLANTIC PETROLPF Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ATLANTIC PETROLPF DK
Pair trading matchups for ATLANTIC PETROLPF
Pair Trading with DAX Index and ATLANTIC PETROLPF
The main advantage of trading using opposite DAX Index and ATLANTIC PETROLPF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ATLANTIC PETROLPF 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 ATLANTIC PETROLPF will offset losses from the drop in ATLANTIC PETROLPF's long position.| DAX Index vs. TRAVEL LEISURE DL 01 | DAX Index vs. COLUMBIA SPORTSWEAR | DAX Index vs. InPlay Oil Corp | DAX Index vs. MAVEN WIRELESS SWEDEN |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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