Correlation Between DAX Index and Fidelity America
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By analyzing existing cross correlation between DAX Index and Fidelity America AD, you can compare the effects of market volatilities on DAX Index and Fidelity America 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 Fidelity America. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Fidelity America.
Diversification Opportunities for DAX Index and Fidelity America
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Fidelity is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Fidelity America AD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity America 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 Fidelity America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity America has no effect on the direction of DAX Index i.e., DAX Index and Fidelity America go up and down completely randomly.
Pair Corralation between DAX Index and Fidelity America
Assuming the 90 days trading horizon DAX Index is expected to generate 0.86 times more return on investment than Fidelity America. However, DAX Index is 1.16 times less risky than Fidelity America. It trades about 0.5 of its potential returns per unit of risk. Fidelity America AD is currently generating about -0.03 per unit of risk. If you would invest 1,903,364 in DAX Index on September 13, 2024 and sell it today you would earn a total of 139,263 from holding DAX Index or generate 7.32% 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. Fidelity America AD
Performance |
| Timeline |
DAX Index and Fidelity America Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Fidelity America AD
Pair trading matchups for Fidelity America
Pair Trading with DAX Index and Fidelity America
The main advantage of trading using opposite DAX Index and Fidelity America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Fidelity America 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 Fidelity America will offset losses from the drop in Fidelity America's long position.| DAX Index vs. CARSALESCOM | DAX Index vs. Sumitomo Mitsui Construction | DAX Index vs. H FARM SPA | DAX Index vs. Nufarm Limited |
| Fidelity America vs. Esfera Robotics R | Fidelity America vs. R co Valor F | Fidelity America vs. CM AM Monplus NE | Fidelity America vs. IE00B0H4TS55 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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