Correlation Between DAX Index and Commerce Bancshares
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By analyzing existing cross correlation between DAX Index and Commerce Bancshares, you can compare the effects of market volatilities on DAX Index and Commerce Bancshares 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 Commerce Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Commerce Bancshares.
Diversification Opportunities for DAX Index and Commerce Bancshares
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Commerce is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Commerce Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerce Bancshares 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 Commerce Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerce Bancshares has no effect on the direction of DAX Index i.e., DAX Index and Commerce Bancshares go up and down completely randomly.
Pair Corralation between DAX Index and Commerce Bancshares
Assuming the 90 days trading horizon DAX Index is expected to generate 0.48 times more return on investment than Commerce Bancshares. However, DAX Index is 2.08 times less risky than Commerce Bancshares. It trades about 0.13 of its potential returns per unit of risk. Commerce Bancshares is currently generating about -0.17 per unit of risk. If you would invest 2,024,637 in DAX Index on October 18, 2024 and sell it today you would earn a total of 32,831 from holding DAX Index or generate 1.62% 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. Commerce Bancshares
Performance |
| Timeline |
DAX Index and Commerce Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Commerce Bancshares
Pair trading matchups for Commerce Bancshares
Pair Trading with DAX Index and Commerce Bancshares
The main advantage of trading using opposite DAX Index and Commerce Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Commerce Bancshares 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 Commerce Bancshares will offset losses from the drop in Commerce Bancshares' long position.| DAX Index vs. CyberArk Software | DAX Index vs. Lendlease Group | DAX Index vs. PSI Software AG | DAX Index vs. Take Two Interactive Software |
| Commerce Bancshares vs. US Bancorp | Commerce Bancshares vs. The PNC Financial | Commerce Bancshares vs. Fifth Third Bancorp | Commerce Bancshares vs. MT Bank Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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