Correlation Between DAX Index and FOX CORP
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By analyzing existing cross correlation between DAX Index and FOX P B, you can compare the effects of market volatilities on DAX Index and FOX CORP 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 FOX CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FOX CORP.
Diversification Opportunities for DAX Index and FOX CORP
Very weak diversification
The 3 months correlation between DAX and FOX is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FOX P B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOX CORP 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 FOX CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOX CORP has no effect on the direction of DAX Index i.e., DAX Index and FOX CORP go up and down completely randomly.
Pair Corralation between DAX Index and FOX CORP
Assuming the 90 days trading horizon DAX Index is expected to generate 4.48 times less return on investment than FOX CORP. But when comparing it to its historical volatility, DAX Index is 2.77 times less risky than FOX CORP. It trades about 0.2 of its potential returns per unit of risk. FOX P B is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,520 in FOX P B on September 4, 2024 and sell it today you would earn a total of 680.00 from holding FOX P B or generate 19.32% 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. FOX P B
Performance |
| Timeline |
DAX Index and FOX CORP Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
FOX P B
Pair trading matchups for FOX CORP
Pair Trading with DAX Index and FOX CORP
The main advantage of trading using opposite DAX Index and FOX CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FOX CORP 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 FOX CORP will offset losses from the drop in FOX CORP's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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