Correlation Between DAX Index and EMERGENT BIOSOLUT
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By analyzing existing cross correlation between DAX Index and EMERGENT BIOSOLUT, you can compare the effects of market volatilities on DAX Index and EMERGENT BIOSOLUT 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 EMERGENT BIOSOLUT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and EMERGENT BIOSOLUT.
Diversification Opportunities for DAX Index and EMERGENT BIOSOLUT
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and EMERGENT is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and EMERGENT BIOSOLUT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERGENT BIOSOLUT 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 EMERGENT BIOSOLUT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERGENT BIOSOLUT has no effect on the direction of DAX Index i.e., DAX Index and EMERGENT BIOSOLUT go up and down completely randomly.
Pair Corralation between DAX Index and EMERGENT BIOSOLUT
Assuming the 90 days trading horizon DAX Index is expected to generate 6.16 times less return on investment than EMERGENT BIOSOLUT. But when comparing it to its historical volatility, DAX Index is 13.28 times less risky than EMERGENT BIOSOLUT. It trades about 0.16 of its potential returns per unit of risk. EMERGENT BIOSOLUT is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 226.00 in EMERGENT BIOSOLUT on November 28, 2024 and sell it today you would earn a total of 452.00 from holding EMERGENT BIOSOLUT or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
DAX Index vs. EMERGENT BIOSOLUT
Performance |
| Timeline |
DAX Index and EMERGENT BIOSOLUT Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
EMERGENT BIOSOLUT
Pair trading matchups for EMERGENT BIOSOLUT
Pair Trading with DAX Index and EMERGENT BIOSOLUT
The main advantage of trading using opposite DAX Index and EMERGENT BIOSOLUT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, EMERGENT BIOSOLUT 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 EMERGENT BIOSOLUT will offset losses from the drop in EMERGENT BIOSOLUT's long position.| DAX Index vs. TRAVEL LEISURE DL 01 | DAX Index vs. COLUMBIA SPORTSWEAR | DAX Index vs. InPlay Oil Corp | DAX Index vs. MAVEN WIRELESS SWEDEN |
| EMERGENT BIOSOLUT vs. SYSTEMAIR AB | EMERGENT BIOSOLUT vs. Japan Medical Dynamic | EMERGENT BIOSOLUT vs. Diamyd Medical AB | EMERGENT BIOSOLUT vs. Altair Engineering |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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