Correlation Between DAX Index and Carlsberg A/S
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By analyzing existing cross correlation between DAX Index and Carlsberg AS, you can compare the effects of market volatilities on DAX Index and Carlsberg A/S 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 Carlsberg A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Carlsberg A/S.
Diversification Opportunities for DAX Index and Carlsberg A/S
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Carlsberg is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg A/S 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 Carlsberg A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg A/S has no effect on the direction of DAX Index i.e., DAX Index and Carlsberg A/S go up and down completely randomly.
Pair Corralation between DAX Index and Carlsberg A/S
Assuming the 90 days trading horizon DAX Index is expected to generate 0.42 times more return on investment than Carlsberg A/S. However, DAX Index is 2.36 times less risky than Carlsberg A/S. It trades about 0.2 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.11 per unit of risk. If you would invest 1,914,785 in DAX Index on September 4, 2024 and sell it today you would earn a total of 78,577 from holding DAX Index or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. Carlsberg AS
Performance |
| Timeline |
DAX Index and Carlsberg A/S Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Carlsberg AS
Pair trading matchups for Carlsberg A/S
Pair Trading with DAX Index and Carlsberg A/S
The main advantage of trading using opposite DAX Index and Carlsberg A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Carlsberg A/S 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 Carlsberg A/S will offset losses from the drop in Carlsberg A/S's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| Carlsberg A/S vs. Heineken Holding NV | Carlsberg A/S vs. Tsingtao Brewery | Carlsberg A/S vs. Asahi Group Holdings | Carlsberg A/S vs. Kirin Holdings |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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