Correlation Between DAX Index and Encavis AG
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By analyzing existing cross correlation between DAX Index and Encavis AG, you can compare the effects of market volatilities on DAX Index and Encavis AG 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 Encavis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Encavis AG.
Diversification Opportunities for DAX Index and Encavis AG
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Encavis is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Encavis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encavis AG 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 Encavis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encavis AG has no effect on the direction of DAX Index i.e., DAX Index and Encavis AG go up and down completely randomly.
Pair Corralation between DAX Index and Encavis AG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.37 times more return on investment than Encavis AG. However, DAX Index is 2.67 times less risky than Encavis AG. It trades about 0.08 of its potential returns per unit of risk. Encavis AG is currently generating about 0.0 per unit of risk. If you would invest 1,449,789 in DAX Index on September 3, 2024 and sell it today you would earn a total of 512,856 from holding DAX Index or generate 35.37% 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. Encavis AG
Performance |
| Timeline |
DAX Index and Encavis AG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Encavis AG
Pair trading matchups for Encavis AG
Pair Trading with DAX Index and Encavis AG
The main advantage of trading using opposite DAX Index and Encavis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Encavis AG 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 Encavis AG will offset losses from the drop in Encavis AG's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Encavis AG vs. CN LGYPWRGRUNSPADR10 | Encavis AG vs. ALERION CLEANPOWER | Encavis AG vs. PNE AG | Encavis AG vs. Lyxor 1 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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