Correlation Between DAX Index and Auckland International
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Auckland International Airport, you can compare the effects of market volatilities on DAX Index and Auckland International 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 Auckland International. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Auckland International.
Diversification Opportunities for DAX Index and Auckland International
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Auckland is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Auckland International Airport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auckland International 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 Auckland International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auckland International has no effect on the direction of DAX Index i.e., DAX Index and Auckland International go up and down completely randomly.
Pair Corralation between DAX Index and Auckland International
Assuming the 90 days trading horizon DAX Index is expected to generate 0.61 times more return on investment than Auckland International. However, DAX Index is 1.64 times less risky than Auckland International. It trades about 0.08 of its potential returns per unit of risk. Auckland International Airport is currently generating about -0.02 per unit of risk. If you would invest 1,449,789 in DAX Index on September 3, 2024 and sell it today you would earn a total of 512,856 from holding DAX Index or generate 35.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Auckland International Airport
Performance |
| Timeline |
DAX Index and Auckland International Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Auckland International Airport
Pair trading matchups for Auckland International
Pair Trading with DAX Index and Auckland International
The main advantage of trading using opposite DAX Index and Auckland International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Auckland International 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 Auckland International will offset losses from the drop in Auckland International'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 |
| Auckland International vs. GFL ENVIRONM | Auckland International vs. CVS Health | Auckland International vs. NIPPON STEEL SPADR | Auckland International vs. Nippon Steel |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |