Correlation Between DAX Index and DEUTSCHE WOHNEN
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By analyzing existing cross correlation between DAX Index and DEUTSCHE WOHNEN ADRS12, you can compare the effects of market volatilities on DAX Index and DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and DEUTSCHE WOHNEN.
Diversification Opportunities for DAX Index and DEUTSCHE WOHNEN
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and DEUTSCHE is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and DEUTSCHE WOHNEN ADRS12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE WOHNEN ADRS12 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 DEUTSCHE WOHNEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE WOHNEN ADRS12 has no effect on the direction of DAX Index i.e., DAX Index and DEUTSCHE WOHNEN go up and down completely randomly.
Pair Corralation between DAX Index and DEUTSCHE WOHNEN
Assuming the 90 days trading horizon DAX Index is expected to generate 0.37 times more return on investment than DEUTSCHE WOHNEN. However, DAX Index is 2.68 times less risky than DEUTSCHE WOHNEN. It trades about 0.17 of its potential returns per unit of risk. DEUTSCHE WOHNEN ADRS12 is currently generating about -0.17 per unit of risk. If you would invest 1,940,520 in DAX Index on September 25, 2024 and sell it today you would earn a total of 44,357 from holding DAX Index or generate 2.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
DAX Index vs. DEUTSCHE WOHNEN ADRS12
Performance |
Timeline |
DAX Index and DEUTSCHE WOHNEN Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
DEUTSCHE WOHNEN ADRS12
Pair trading matchups for DEUTSCHE WOHNEN
Pair Trading with DAX Index and DEUTSCHE WOHNEN
The main advantage of trading using opposite DAX Index and DEUTSCHE WOHNEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN will offset losses from the drop in DEUTSCHE WOHNEN's long position.DAX Index vs. Universal Display | DAX Index vs. Playtech plc | DAX Index vs. Columbia Sportswear | DAX Index vs. PLAYMATES TOYS |
DEUTSCHE WOHNEN vs. China Resources Land | DEUTSCHE WOHNEN vs. CTP NV EO | DEUTSCHE WOHNEN vs. SEAZEN GROUP LTD | DEUTSCHE WOHNEN vs. Atrium Ljungberg 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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