Correlation Between DAX Index and Carrefour
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By analyzing existing cross correlation between DAX Index and Carrefour SA, you can compare the effects of market volatilities on DAX Index and Carrefour 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 Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Carrefour.
Diversification Opportunities for DAX Index and Carrefour
Good diversification
The 3 months correlation between DAX and Carrefour is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA 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 Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrefour SA has no effect on the direction of DAX Index i.e., DAX Index and Carrefour go up and down completely randomly.
Pair Corralation between DAX Index and Carrefour
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Carrefour. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.94 times less risky than Carrefour. The index trades about -0.05 of its potential returns per unit of risk. The Carrefour SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,456 in Carrefour SA on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Carrefour SA or generate 0.14% 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. Carrefour SA
Performance |
| Timeline |
DAX Index and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Carrefour SA
Pair trading matchups for Carrefour
Pair Trading with DAX Index and Carrefour
The main advantage of trading using opposite DAX Index and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Carrefour 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 Carrefour will offset losses from the drop in Carrefour's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| Carrefour vs. Superior Plus Corp | Carrefour vs. NMI Holdings | Carrefour vs. Origin Agritech | Carrefour vs. SIVERS SEMICONDUCTORS AB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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