Correlation Between DAX Index and Mapfre SA
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Mapfre SA, you can compare the effects of market volatilities on DAX Index and Mapfre SA 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 Mapfre SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Mapfre SA.
Diversification Opportunities for DAX Index and Mapfre SA
Very weak diversification
The 3 months correlation between DAX and Mapfre is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Mapfre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre SA 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 Mapfre SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre SA has no effect on the direction of DAX Index i.e., DAX Index and Mapfre SA go up and down completely randomly.
Pair Corralation between DAX Index and Mapfre SA
Assuming the 90 days trading horizon DAX Index is expected to generate 0.52 times more return on investment than Mapfre SA. However, DAX Index is 1.92 times less risky than Mapfre SA. It trades about 0.45 of its potential returns per unit of risk. Mapfre SA is currently generating about -0.01 per unit of risk. If you would invest 1,926,370 in DAX Index on September 15, 2024 and sell it today you would earn a total of 114,222 from holding DAX Index or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Mapfre SA
Performance |
| Timeline |
DAX Index and Mapfre SA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Mapfre SA
Pair trading matchups for Mapfre SA
Pair Trading with DAX Index and Mapfre SA
The main advantage of trading using opposite DAX Index and Mapfre SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Mapfre SA 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 Mapfre SA will offset losses from the drop in Mapfre SA's long position.| DAX Index vs. Flutter Entertainment PLC | DAX Index vs. LG Display Co | DAX Index vs. TOWNSQUARE MEDIA INC | DAX Index vs. Prosiebensat 1 Media |
| Mapfre SA vs. National Beverage Corp | Mapfre SA vs. Charoen Pokphand Foods | Mapfre SA vs. Singapore Reinsurance | Mapfre SA vs. Performance Food Group |
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
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |