Correlation Between DAX Index and Cal-Maine Foods
Specify exactly 2 symbols:
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 Foods 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 Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Cal-Maine Foods.
Diversification Opportunities for DAX Index and Cal-Maine Foods
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Cal-Maine is 0.72. 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 Foods. 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 Foods go up and down completely randomly.
Pair Corralation between DAX Index and Cal-Maine Foods
Assuming the 90 days trading horizon DAX Index is expected to generate 4.27 times less return on investment than Cal-Maine Foods. But when comparing it to its historical volatility, DAX Index is 1.88 times less risky than Cal-Maine Foods. It trades about 0.14 of its potential returns per unit of risk. Cal Maine Foods is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 8,084 in Cal Maine Foods on September 1, 2024 and sell it today you would earn a total of 1,044 from holding Cal Maine Foods or generate 12.91% 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 Foods Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Cal Maine Foods
Pair trading matchups for Cal-Maine Foods
Pair Trading with DAX Index and Cal-Maine Foods
The main advantage of trading using opposite DAX Index and Cal-Maine Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Cal-Maine Foods 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 Foods will offset losses from the drop in Cal-Maine Foods' 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 |
| Cal-Maine Foods vs. Gamma Communications plc | Cal-Maine Foods vs. Cogent Communications Holdings | Cal-Maine Foods vs. Entravision Communications | Cal-Maine Foods vs. Highlight Communications AG |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |