Correlation Between DAX Index and DAWSON GEOPHYSICAL
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By analyzing existing cross correlation between DAX Index and DAWSON GEOPHYSICAL, you can compare the effects of market volatilities on DAX Index and DAWSON GEOPHYSICAL 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 DAWSON GEOPHYSICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and DAWSON GEOPHYSICAL.
Diversification Opportunities for DAX Index and DAWSON GEOPHYSICAL
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and DAWSON is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and DAWSON GEOPHYSICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAWSON GEOPHYSICAL 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 DAWSON GEOPHYSICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAWSON GEOPHYSICAL has no effect on the direction of DAX Index i.e., DAX Index and DAWSON GEOPHYSICAL go up and down completely randomly.
Pair Corralation between DAX Index and DAWSON GEOPHYSICAL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.37 times more return on investment than DAWSON GEOPHYSICAL. However, DAX Index is 2.7 times less risky than DAWSON GEOPHYSICAL. It trades about 0.53 of its potential returns per unit of risk. DAWSON GEOPHYSICAL is currently generating about 0.19 per unit of risk. If you would invest 1,900,311 in DAX Index on September 14, 2024 and sell it today you would earn a total of 142,316 from holding DAX Index or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. DAWSON GEOPHYSICAL
Performance |
| Timeline |
DAX Index and DAWSON GEOPHYSICAL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
DAWSON GEOPHYSICAL
Pair trading matchups for DAWSON GEOPHYSICAL
Pair Trading with DAX Index and DAWSON GEOPHYSICAL
The main advantage of trading using opposite DAX Index and DAWSON GEOPHYSICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, DAWSON GEOPHYSICAL 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 DAWSON GEOPHYSICAL will offset losses from the drop in DAWSON GEOPHYSICAL's long position.| DAX Index vs. CARSALESCOM | DAX Index vs. Sumitomo Mitsui Construction | DAX Index vs. H FARM SPA | DAX Index vs. Nufarm Limited |
| DAWSON GEOPHYSICAL vs. BJs Wholesale Club | DAWSON GEOPHYSICAL vs. Singapore Telecommunications Limited | DAWSON GEOPHYSICAL vs. Mobilezone Holding AG | DAWSON GEOPHYSICAL vs. Burlington Stores |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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