Correlation Between DAX Index and EssilorLuxottica
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By analyzing existing cross correlation between DAX Index and EssilorLuxottica Socit anonyme, you can compare the effects of market volatilities on DAX Index and EssilorLuxottica 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 EssilorLuxottica. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and EssilorLuxottica.
Diversification Opportunities for DAX Index and EssilorLuxottica
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and EssilorLuxottica is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and EssilorLuxottica Socit anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EssilorLuxottica Socit 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 EssilorLuxottica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EssilorLuxottica Socit has no effect on the direction of DAX Index i.e., DAX Index and EssilorLuxottica go up and down completely randomly.
Pair Corralation between DAX Index and EssilorLuxottica
Assuming the 90 days trading horizon DAX Index is expected to generate 1.17 times less return on investment than EssilorLuxottica. But when comparing it to its historical volatility, DAX Index is 1.55 times less risky than EssilorLuxottica. It trades about 0.08 of its potential returns per unit of risk. EssilorLuxottica Socit anonyme is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 17,165 in EssilorLuxottica Socit anonyme on August 26, 2024 and sell it today you would earn a total of 6,445 from holding EssilorLuxottica Socit anonyme or generate 37.55% 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. EssilorLuxottica Socit anonyme
Performance |
| Timeline |
DAX Index and EssilorLuxottica Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
EssilorLuxottica Socit anonyme
Pair trading matchups for EssilorLuxottica
Pair Trading with DAX Index and EssilorLuxottica
The main advantage of trading using opposite DAX Index and EssilorLuxottica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, EssilorLuxottica 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 EssilorLuxottica will offset losses from the drop in EssilorLuxottica's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| EssilorLuxottica vs. PTT Global Chemical | EssilorLuxottica vs. Ryanair Holdings plc | EssilorLuxottica vs. Alaska Air Group | EssilorLuxottica vs. SHIN ETSU CHEMICAL |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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