Correlation Between DAX Index and FIRST MUTUAL
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By analyzing existing cross correlation between DAX Index and FIRST MUTUAL PROPERTIES, you can compare the effects of market volatilities on DAX Index and FIRST MUTUAL 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 FIRST MUTUAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FIRST MUTUAL.
Diversification Opportunities for DAX Index and FIRST MUTUAL
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and FIRST is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FIRST MUTUAL PROPERTIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST MUTUAL PROPERTIES 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 FIRST MUTUAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST MUTUAL PROPERTIES has no effect on the direction of DAX Index i.e., DAX Index and FIRST MUTUAL go up and down completely randomly.
Pair Corralation between DAX Index and FIRST MUTUAL
Assuming the 90 days trading horizon DAX Index is expected to under-perform the FIRST MUTUAL. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 6.63 times less risky than FIRST MUTUAL. The index trades about -0.05 of its potential returns per unit of risk. The FIRST MUTUAL PROPERTIES is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 7,950 in FIRST MUTUAL PROPERTIES on August 27, 2024 and sell it today you would earn a total of 1,550 from holding FIRST MUTUAL PROPERTIES or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. FIRST MUTUAL PROPERTIES
Performance |
| Timeline |
DAX Index and FIRST MUTUAL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
FIRST MUTUAL PROPERTIES
Pair trading matchups for FIRST MUTUAL
Pair Trading with DAX Index and FIRST MUTUAL
The main advantage of trading using opposite DAX Index and FIRST MUTUAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FIRST MUTUAL 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 FIRST MUTUAL will offset losses from the drop in FIRST MUTUAL's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| FIRST MUTUAL vs. Cass Saddle Agriculture | FIRST MUTUAL vs. RIO ZIM LIMITED | FIRST MUTUAL vs. Morgan Co Multi | FIRST MUTUAL vs. STAR AFRICA PORATION |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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