Correlation Between DAX Index and Comstock Holding
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By analyzing existing cross correlation between DAX Index and Comstock Holding Companies, you can compare the effects of market volatilities on DAX Index and Comstock Holding 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 Comstock Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Comstock Holding.
Diversification Opportunities for DAX Index and Comstock Holding
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Comstock is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of DAX Index i.e., DAX Index and Comstock Holding go up and down completely randomly.
Pair Corralation between DAX Index and Comstock Holding
Assuming the 90 days trading horizon DAX Index is expected to generate 0.12 times more return on investment than Comstock Holding. However, DAX Index is 8.58 times less risky than Comstock Holding. It trades about 0.4 of its potential returns per unit of risk. Comstock Holding Companies is currently generating about -0.08 per unit of risk. If you would invest 1,918,919 in DAX Index on September 19, 2024 and sell it today you would earn a total of 105,338 from holding DAX Index or generate 5.49% 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. Comstock Holding Companies
Performance |
| Timeline |
DAX Index and Comstock Holding Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Comstock Holding Companies
Pair trading matchups for Comstock Holding
Pair Trading with DAX Index and Comstock Holding
The main advantage of trading using opposite DAX Index and Comstock Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Comstock Holding 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 Comstock Holding will offset losses from the drop in Comstock Holding's long position.| DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
| Comstock Holding vs. GRUPO CARSO A1 | Comstock Holding vs. Elmos Semiconductor SE | Comstock Holding vs. Carsales | Comstock Holding vs. 24SEVENOFFICE GROUP 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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