Correlation Between DAX Index and Chengdu PUTIAN
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By analyzing existing cross correlation between DAX Index and Chengdu PUTIAN Telecommunications, you can compare the effects of market volatilities on DAX Index and Chengdu PUTIAN 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 Chengdu PUTIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Chengdu PUTIAN.
Diversification Opportunities for DAX Index and Chengdu PUTIAN
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Chengdu is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Chengdu PUTIAN Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu PUTIAN Telec 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 Chengdu PUTIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu PUTIAN Telec has no effect on the direction of DAX Index i.e., DAX Index and Chengdu PUTIAN go up and down completely randomly.
Pair Corralation between DAX Index and Chengdu PUTIAN
Assuming the 90 days trading horizon DAX Index is expected to generate 2.96 times less return on investment than Chengdu PUTIAN. But when comparing it to its historical volatility, DAX Index is 9.48 times less risky than Chengdu PUTIAN. It trades about 0.08 of its potential returns per unit of risk. Chengdu PUTIAN Telecommunications is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Chengdu PUTIAN Telecommunications on October 12, 2024 and sell it today you would lose (2.65) from holding Chengdu PUTIAN Telecommunications or give up 26.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Chengdu PUTIAN Telecommunicati
Performance |
| Timeline |
DAX Index and Chengdu PUTIAN Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Chengdu PUTIAN Telecommunications
Pair trading matchups for Chengdu PUTIAN
Pair Trading with DAX Index and Chengdu PUTIAN
The main advantage of trading using opposite DAX Index and Chengdu PUTIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Chengdu PUTIAN 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 Chengdu PUTIAN will offset losses from the drop in Chengdu PUTIAN's long position.| DAX Index vs. Eurasia Mining Plc | DAX Index vs. URBAN OUTFITTERS | DAX Index vs. MCEWEN MINING INC | DAX Index vs. ANGLO ASIAN MINING |
| Chengdu PUTIAN vs. ZTE Corporation | Chengdu PUTIAN vs. Superior Plus Corp | Chengdu PUTIAN vs. NMI Holdings | Chengdu PUTIAN vs. SIVERS SEMICONDUCTORS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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