Correlation Between DAX Index and CAL MAINE
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By analyzing existing cross correlation between DAX Index and CAL MAINE FOODS, you can compare the effects of market volatilities on DAX Index and CAL MAINE 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 CAL MAINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CAL MAINE.
Diversification Opportunities for DAX Index and CAL MAINE
Poor diversification
The 3 months correlation between DAX and CAL is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CAL MAINE FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAL MAINE FOODS 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 CAL MAINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAL MAINE FOODS has no effect on the direction of DAX Index i.e., DAX Index and CAL MAINE go up and down completely randomly.
Pair Corralation between DAX Index and CAL MAINE
Assuming the 90 days trading horizon DAX Index is expected to generate 5.92 times less return on investment than CAL MAINE. But when comparing it to its historical volatility, DAX Index is 2.22 times less risky than CAL MAINE. It trades about 0.07 of its potential returns per unit of risk. CAL MAINE FOODS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,123 in CAL MAINE FOODS on August 25, 2024 and sell it today you would earn a total of 3,965 from holding CAL MAINE FOODS or generate 77.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. CAL MAINE FOODS
Performance |
| Timeline |
DAX Index and CAL MAINE Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CAL MAINE FOODS
Pair trading matchups for CAL MAINE
Pair Trading with DAX Index and CAL MAINE
The main advantage of trading using opposite DAX Index and CAL MAINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CAL MAINE 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 CAL MAINE will offset losses from the drop in CAL MAINE's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| CAL MAINE vs. RYU Apparel | CAL MAINE vs. DALATA HOTEL | CAL MAINE vs. G III APPAREL GROUP | CAL MAINE vs. COVIVIO HOTELS INH |
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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