Correlation Between DAX Index and Ceres Power
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By analyzing existing cross correlation between DAX Index and Ceres Power Holdings, you can compare the effects of market volatilities on DAX Index and Ceres Power 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 Ceres Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Ceres Power.
Diversification Opportunities for DAX Index and Ceres Power
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Ceres is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Ceres Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceres Power 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 Ceres Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceres Power Holdings has no effect on the direction of DAX Index i.e., DAX Index and Ceres Power go up and down completely randomly.
Pair Corralation between DAX Index and Ceres Power
Assuming the 90 days trading horizon DAX Index is expected to generate 0.12 times more return on investment than Ceres Power. However, DAX Index is 8.08 times less risky than Ceres Power. It trades about 0.13 of its potential returns per unit of risk. Ceres Power Holdings is currently generating about 0.01 per unit of risk. If you would invest 1,513,597 in DAX Index on September 1, 2024 and sell it today you would earn a total of 449,048 from holding DAX Index or generate 29.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
DAX Index vs. Ceres Power Holdings
Performance |
| Timeline |
DAX Index and Ceres Power Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Ceres Power Holdings
Pair trading matchups for Ceres Power
Pair Trading with DAX Index and Ceres Power
The main advantage of trading using opposite DAX Index and Ceres Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Ceres Power 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 Ceres Power will offset losses from the drop in Ceres Power's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| Ceres Power vs. Varta AG | Ceres Power vs. Superior Plus Corp | Ceres Power vs. Origin Agritech | Ceres Power vs. Identiv |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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