Correlation Between DAX Index and Carnival Plc
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By analyzing existing cross correlation between DAX Index and Carnival plc, you can compare the effects of market volatilities on DAX Index and Carnival Plc 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 Carnival Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Carnival Plc.
Diversification Opportunities for DAX Index and Carnival Plc
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Carnival is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Carnival plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnival plc 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 Carnival Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnival plc has no effect on the direction of DAX Index i.e., DAX Index and Carnival Plc go up and down completely randomly.
Pair Corralation between DAX Index and Carnival Plc
Assuming the 90 days trading horizon DAX Index is expected to generate 17.43 times less return on investment than Carnival Plc. But when comparing it to its historical volatility, DAX Index is 2.81 times less risky than Carnival Plc. It trades about 0.05 of its potential returns per unit of risk. Carnival plc is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,045 in Carnival plc on August 31, 2024 and sell it today you would earn a total of 355.00 from holding Carnival plc or generate 17.36% 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. Carnival plc
Performance |
| Timeline |
DAX Index and Carnival Plc Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Carnival plc
Pair trading matchups for Carnival Plc
Pair Trading with DAX Index and Carnival Plc
The main advantage of trading using opposite DAX Index and Carnival Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Carnival Plc 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 Carnival Plc will offset losses from the drop in Carnival Plc's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| Carnival Plc vs. Li Ning Company | Carnival Plc vs. Trip Group Limited | Carnival Plc vs. Superior Plus Corp | Carnival Plc vs. NMI Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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