Correlation Between DAX Index and Equinix
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By analyzing existing cross correlation between DAX Index and Equinix, you can compare the effects of market volatilities on DAX Index and Equinix 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 Equinix. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Equinix.
Diversification Opportunities for DAX Index and Equinix
Very weak diversification
The 3 months correlation between DAX and Equinix is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Equinix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinix 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 Equinix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinix has no effect on the direction of DAX Index i.e., DAX Index and Equinix go up and down completely randomly.
Pair Corralation between DAX Index and Equinix
Assuming the 90 days trading horizon DAX Index is expected to generate 1.43 times less return on investment than Equinix. But when comparing it to its historical volatility, DAX Index is 1.96 times less risky than Equinix. It trades about 0.08 of its potential returns per unit of risk. Equinix is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 63,377 in Equinix on September 3, 2024 and sell it today you would earn a total of 30,643 from holding Equinix or generate 48.35% 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. Equinix
Performance |
| Timeline |
DAX Index and Equinix Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Equinix
Pair trading matchups for Equinix
Pair Trading with DAX Index and Equinix
The main advantage of trading using opposite DAX Index and Equinix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Equinix 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 Equinix will offset losses from the drop in Equinix'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 |
| Equinix vs. Sunstone Hotel Investors | Equinix vs. HYATT HOTELS A | Equinix vs. Dalata Hotel Group | Equinix vs. Taiwan Semiconductor Manufacturing |
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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