Correlation Between DAX Index and Dominion Energy
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By analyzing existing cross correlation between DAX Index and Dominion Energy, you can compare the effects of market volatilities on DAX Index and Dominion Energy 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 Dominion Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Dominion Energy.
Diversification Opportunities for DAX Index and Dominion Energy
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Dominion is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Dominion Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominion Energy 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 Dominion Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominion Energy has no effect on the direction of DAX Index i.e., DAX Index and Dominion Energy go up and down completely randomly.
Pair Corralation between DAX Index and Dominion Energy
Assuming the 90 days trading horizon DAX Index is expected to generate 0.54 times more return on investment than Dominion Energy. However, DAX Index is 1.87 times less risky than Dominion Energy. It trades about 0.08 of its potential returns per unit of risk. Dominion Energy is currently generating about 0.02 per unit of risk. If you would invest 1,430,663 in DAX Index on September 2, 2024 and sell it today you would earn a total of 531,982 from holding DAX Index or generate 37.18% 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. Dominion Energy
Performance |
| Timeline |
DAX Index and Dominion Energy Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Dominion Energy
Pair trading matchups for Dominion Energy
Pair Trading with DAX Index and Dominion Energy
The main advantage of trading using opposite DAX Index and Dominion Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Dominion Energy 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 Dominion Energy will offset losses from the drop in Dominion Energy's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Dominion Energy vs. TEXAS ROADHOUSE | Dominion Energy vs. United Airlines Holdings | Dominion Energy vs. SINGAPORE AIRLINES | Dominion Energy vs. BJs Restaurants |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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