Correlation Between DAX Index and DATAGROUP
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By analyzing existing cross correlation between DAX Index and DATAGROUP SE, you can compare the effects of market volatilities on DAX Index and DATAGROUP 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 DATAGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and DATAGROUP.
Diversification Opportunities for DAX Index and DATAGROUP
Very weak diversification
The 3 months correlation between DAX and DATAGROUP is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE 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 DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of DAX Index i.e., DAX Index and DATAGROUP go up and down completely randomly.
Pair Corralation between DAX Index and DATAGROUP
Assuming the 90 days trading horizon DAX Index is expected to generate 0.39 times more return on investment than DATAGROUP. However, DAX Index is 2.57 times less risky than DATAGROUP. It trades about 0.08 of its potential returns per unit of risk. DATAGROUP SE is currently generating about -0.02 per unit of risk. If you would invest 1,437,072 in DAX Index on August 30, 2024 and sell it today you would earn a total of 489,103 from holding DAX Index or generate 34.03% 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. DATAGROUP SE
Performance |
| Timeline |
DAX Index and DATAGROUP Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
DATAGROUP SE
Pair trading matchups for DATAGROUP
Pair Trading with DAX Index and DATAGROUP
The main advantage of trading using opposite DAX Index and DATAGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, DATAGROUP 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 DATAGROUP will offset losses from the drop in DATAGROUP's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| DATAGROUP vs. Accenture plc | DATAGROUP vs. International Business Machines | DATAGROUP vs. Superior Plus Corp | DATAGROUP 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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