Correlation Between DAX Index and CSL
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By analyzing existing cross correlation between DAX Index and CSL LTD SPONADR, you can compare the effects of market volatilities on DAX Index and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CSL.
Diversification Opportunities for DAX Index and CSL
Good diversification
The 3 months correlation between DAX and CSL is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of DAX Index i.e., DAX Index and CSL go up and down completely randomly.
Pair Corralation between DAX Index and CSL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.47 times more return on investment than CSL. However, DAX Index is 2.11 times less risky than CSL. It trades about 0.14 of its potential returns per unit of risk. CSL LTD SPONADR is currently generating about 0.0 per unit of risk. If you would invest 1,907,754 in DAX Index on September 1, 2024 and sell it today you would earn a total of 54,891 from holding DAX Index or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. CSL LTD SPONADR
Performance |
| Timeline |
DAX Index and CSL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CSL LTD SPONADR
Pair trading matchups for CSL
Pair Trading with DAX Index and CSL
The main advantage of trading using opposite DAX Index and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's 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 |
| CSL vs. Gaztransport Technigaz SA | CSL vs. TITANIUM TRANSPORTGROUP | CSL vs. Transportadora de Gas | CSL vs. AUSTEVOLL SEAFOOD |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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