Correlation Between DAX Index and Daido Steel
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Daido Steel Co, you can compare the effects of market volatilities on DAX Index and Daido Steel 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 Daido Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Daido Steel.
Diversification Opportunities for DAX Index and Daido Steel
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Daido is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Daido Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daido Steel 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 Daido Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daido Steel has no effect on the direction of DAX Index i.e., DAX Index and Daido Steel go up and down completely randomly.
Pair Corralation between DAX Index and Daido Steel
Assuming the 90 days trading horizon DAX Index is expected to generate 0.39 times more return on investment than Daido Steel. However, DAX Index is 2.59 times less risky than Daido Steel. It trades about -0.03 of its potential returns per unit of risk. Daido Steel Co is currently generating about -0.19 per unit of risk. If you would invest 1,953,162 in DAX Index on August 28, 2024 and sell it today you would lose (12,642) from holding DAX Index or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Daido Steel Co
Performance |
| Timeline |
DAX Index and Daido Steel Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Daido Steel Co
Pair trading matchups for Daido Steel
Pair Trading with DAX Index and Daido Steel
The main advantage of trading using opposite DAX Index and Daido Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Daido Steel 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 Daido Steel will offset losses from the drop in Daido Steel's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |