Correlation Between DAX Index and Resona Holdings
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By analyzing existing cross correlation between DAX Index and Resona Holdings, you can compare the effects of market volatilities on DAX Index and Resona Holdings 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 Resona Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Resona Holdings.
Diversification Opportunities for DAX Index and Resona Holdings
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Resona is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Resona Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resona Holdings 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 Resona Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resona Holdings has no effect on the direction of DAX Index i.e., DAX Index and Resona Holdings go up and down completely randomly.
Pair Corralation between DAX Index and Resona Holdings
Assuming the 90 days trading horizon DAX Index is expected to generate 2.11 times less return on investment than Resona Holdings. But when comparing it to its historical volatility, DAX Index is 3.61 times less risky than Resona Holdings. It trades about 0.13 of its potential returns per unit of risk. Resona Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 488.00 in Resona Holdings on September 1, 2024 and sell it today you would earn a total of 292.00 from holding Resona Holdings or generate 59.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
DAX Index vs. Resona Holdings
Performance |
| Timeline |
DAX Index and Resona Holdings Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Resona Holdings
Pair trading matchups for Resona Holdings
Pair Trading with DAX Index and Resona Holdings
The main advantage of trading using opposite DAX Index and Resona Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Resona Holdings 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 Resona Holdings will offset losses from the drop in Resona Holdings' long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| Resona Holdings vs. Singapore Reinsurance | Resona Holdings vs. United Insurance Holdings | Resona Holdings vs. Reinsurance Group of | Resona Holdings vs. MI Homes |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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