Correlation Between DAX Index and Computer
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Computer And Technologies, you can compare the effects of market volatilities on DAX Index and Computer 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 Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Computer.
Diversification Opportunities for DAX Index and Computer
Good diversification
The 3 months correlation between DAX and Computer is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies 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 Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of DAX Index i.e., DAX Index and Computer go up and down completely randomly.
Pair Corralation between DAX Index and Computer
Assuming the 90 days trading horizon DAX Index is expected to generate 7.5 times less return on investment than Computer. But when comparing it to its historical volatility, DAX Index is 5.02 times less risky than Computer. It trades about 0.05 of its potential returns per unit of risk. Computer And Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Computer And Technologies on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Computer And Technologies or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Computer And Technologies
Performance |
| Timeline |
DAX Index and Computer Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Computer And Technologies
Pair trading matchups for Computer
Pair Trading with DAX Index and Computer
The main advantage of trading using opposite DAX Index and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Computer 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 Computer will offset losses from the drop in Computer's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| Computer vs. Uber Technologies | Computer vs. AAC TECHNOLOGHLDGADR | Computer vs. SALESFORCE INC CDR | Computer vs. ScanSource |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |