Correlation Between DAX Index and Evotec SE
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By analyzing existing cross correlation between DAX Index and Evotec SE, you can compare the effects of market volatilities on DAX Index and Evotec SE 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 Evotec SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Evotec SE.
Diversification Opportunities for DAX Index and Evotec SE
Weak diversification
The 3 months correlation between DAX and Evotec is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Evotec SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evotec SE 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 Evotec SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evotec SE has no effect on the direction of DAX Index i.e., DAX Index and Evotec SE go up and down completely randomly.
Pair Corralation between DAX Index and Evotec SE
Assuming the 90 days trading horizon DAX Index is expected to generate 0.19 times more return on investment than Evotec SE. However, DAX Index is 5.28 times less risky than Evotec SE. It trades about 0.1 of its potential returns per unit of risk. Evotec SE is currently generating about 0.0 per unit of risk. If you would invest 1,391,407 in DAX Index on September 12, 2024 and sell it today you would earn a total of 641,509 from holding DAX Index or generate 46.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Evotec SE
Performance |
| Timeline |
DAX Index and Evotec SE Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Evotec SE
Pair trading matchups for Evotec SE
Pair Trading with DAX Index and Evotec SE
The main advantage of trading using opposite DAX Index and Evotec SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Evotec SE 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 Evotec SE will offset losses from the drop in Evotec SE's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Evotec SE vs. CanSino Biologics | Evotec SE vs. Superior Plus Corp | Evotec SE vs. SIVERS SEMICONDUCTORS AB | Evotec SE vs. CHINA HUARONG ENERHD 50 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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