Correlation Between DAX Index and CIM FINANCIAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and CIM FINANCIAL SERVICES, you can compare the effects of market volatilities on DAX Index and CIM FINANCIAL 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 CIM FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CIM FINANCIAL.
Diversification Opportunities for DAX Index and CIM FINANCIAL
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and CIM is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CIM FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIM FINANCIAL SERVICES 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 CIM FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIM FINANCIAL SERVICES has no effect on the direction of DAX Index i.e., DAX Index and CIM FINANCIAL go up and down completely randomly.
Pair Corralation between DAX Index and CIM FINANCIAL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.96 times more return on investment than CIM FINANCIAL. However, DAX Index is 1.04 times less risky than CIM FINANCIAL. It trades about -0.03 of its potential returns per unit of risk. CIM FINANCIAL SERVICES is currently generating about -0.36 per unit of risk. If you would invest 1,953,162 in DAX Index on August 27, 2024 and sell it today you would lose (12,642) from holding DAX Index or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
DAX Index vs. CIM FINANCIAL SERVICES
Performance |
| Timeline |
DAX Index and CIM FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CIM FINANCIAL SERVICES
Pair trading matchups for CIM FINANCIAL
Pair Trading with DAX Index and CIM FINANCIAL
The main advantage of trading using opposite DAX Index and CIM FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CIM FINANCIAL 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 CIM FINANCIAL will offset losses from the drop in CIM FINANCIAL's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| CIM FINANCIAL vs. MCB GROUP LTD | CIM FINANCIAL vs. LOTTOTECH LTD | CIM FINANCIAL vs. NEW MAURITIUS HOTELS | CIM FINANCIAL vs. MIWA SUGAR LIMITED |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |