Correlation Between DAX Index and Cooper Standard
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By analyzing existing cross correlation between DAX Index and Cooper Standard Holdings, you can compare the effects of market volatilities on DAX Index and Cooper Standard 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 Cooper Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Cooper Standard.
Diversification Opportunities for DAX Index and Cooper Standard
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Cooper is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Cooper Standard Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Standard Holdings 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 Cooper Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Standard Holdings has no effect on the direction of DAX Index i.e., DAX Index and Cooper Standard go up and down completely randomly.
Pair Corralation between DAX Index and Cooper Standard
Assuming the 90 days trading horizon DAX Index is expected to generate 0.18 times more return on investment than Cooper Standard. However, DAX Index is 5.62 times less risky than Cooper Standard. It trades about 0.27 of its potential returns per unit of risk. Cooper Standard Holdings is currently generating about -0.09 per unit of risk. If you would invest 2,128,218 in DAX Index on November 28, 2024 and sell it today you would earn a total of 112,809 from holding DAX Index or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Cooper Standard Holdings
Performance |
| Timeline |
DAX Index and Cooper Standard Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Cooper Standard Holdings
Pair trading matchups for Cooper Standard
Pair Trading with DAX Index and Cooper Standard
The main advantage of trading using opposite DAX Index and Cooper Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Cooper Standard 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 Cooper Standard will offset losses from the drop in Cooper Standard'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 |
| Cooper Standard vs. United Rentals | Cooper Standard vs. Sixt Leasing SE | Cooper Standard vs. AviChina Industry Technology | Cooper Standard vs. FANDIFI TECHNOLOGY P |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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