Correlation Between DAX Index and Brown Forman
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Brown Forman, you can compare the effects of market volatilities on DAX Index and Brown Forman 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 Brown Forman. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Brown Forman.
Diversification Opportunities for DAX Index and Brown Forman
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Brown is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Brown Forman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Forman 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 Brown Forman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Forman has no effect on the direction of DAX Index i.e., DAX Index and Brown Forman go up and down completely randomly.
Pair Corralation between DAX Index and Brown Forman
Assuming the 90 days trading horizon DAX Index is expected to generate 1.98 times less return on investment than Brown Forman. But when comparing it to its historical volatility, DAX Index is 2.79 times less risky than Brown Forman. It trades about 0.25 of its potential returns per unit of risk. Brown Forman is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,842 in Brown Forman on September 12, 2024 and sell it today you would earn a total of 336.00 from holding Brown Forman or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Brown Forman
Performance |
| Timeline |
DAX Index and Brown Forman Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Brown Forman
Pair trading matchups for Brown Forman
Pair Trading with DAX Index and Brown Forman
The main advantage of trading using opposite DAX Index and Brown Forman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Brown Forman 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 Brown Forman will offset losses from the drop in Brown Forman's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Brown Forman vs. Monster Beverage Corp | Brown Forman vs. BANKINTER ADR 2007 | Brown Forman vs. Fevertree Drinks PLC | Brown Forman vs. Ameriprise Financial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |