Correlation Between DAX Index and City Of
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By analyzing existing cross correlation between DAX Index and The City of, you can compare the effects of market volatilities on DAX Index and City Of 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 City Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and City Of.
Diversification Opportunities for DAX Index and City Of
Poor diversification
The 3 months correlation between DAX and City is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and The City of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The City 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 City Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The City has no effect on the direction of DAX Index i.e., DAX Index and City Of go up and down completely randomly.
Pair Corralation between DAX Index and City Of
Assuming the 90 days trading horizon DAX Index is expected to generate 0.54 times more return on investment than City Of. However, DAX Index is 1.86 times less risky than City Of. It trades about 0.1 of its potential returns per unit of risk. The City of is currently generating about 0.04 per unit of risk. If you would invest 1,565,517 in DAX Index on November 27, 2024 and sell it today you would earn a total of 677,076 from holding DAX Index or generate 43.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
DAX Index vs. The City of
Performance |
| Timeline |
DAX Index and City Of Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
The City of
Pair trading matchups for City Of
Pair Trading with DAX Index and City Of
The main advantage of trading using opposite DAX Index and City Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, City Of 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 City Of will offset losses from the drop in City Of's long position.| DAX Index vs. CAIRN HOMES EO | DAX Index vs. Hisense Home Appliances | DAX Index vs. STRAYER EDUCATION | DAX Index vs. CHINA EDUCATION GROUP |
| City Of vs. CITIC Telecom International | City Of vs. Agilent Technologies | City Of vs. HUTCHISON TELECOMM | City Of vs. Cairo Communication SpA |
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 Stocks Directory module to find actively traded stocks across global markets.
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