Correlation Between DAX Index and BP Plc
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and BP plc, you can compare the effects of market volatilities on DAX Index and BP Plc 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 BP Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and BP Plc.
Diversification Opportunities for DAX Index and BP Plc
Very good diversification
The 3 months correlation between DAX and BSU is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and BP plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BP plc 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 BP Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BP plc has no effect on the direction of DAX Index i.e., DAX Index and BP Plc go up and down completely randomly.
Pair Corralation between DAX Index and BP Plc
Assuming the 90 days trading horizon DAX Index is expected to generate 0.54 times more return on investment than BP Plc. However, DAX Index is 1.86 times less risky than BP Plc. It trades about 0.09 of its potential returns per unit of risk. BP plc is currently generating about -0.03 per unit of risk. If you would invest 1,640,476 in DAX Index on August 29, 2024 and sell it today you would earn a total of 289,122 from holding DAX Index or generate 17.62% 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. BP plc
Performance |
| Timeline |
DAX Index and BP Plc Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
BP plc
Pair trading matchups for BP Plc
Pair Trading with DAX Index and BP Plc
The main advantage of trading using opposite DAX Index and BP Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, BP Plc 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 BP Plc will offset losses from the drop in BP Plc's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| BP Plc vs. Japan Medical Dynamic | BP Plc vs. PT Indofood Sukses | BP Plc vs. INDOFOOD AGRI RES | BP Plc vs. Clearside Biomedical |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |