Correlation Between DAX Index and FISH PAYK
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By analyzing existing cross correlation between DAX Index and FISH PAYK HEALTH, you can compare the effects of market volatilities on DAX Index and FISH PAYK 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 FISH PAYK. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FISH PAYK.
Diversification Opportunities for DAX Index and FISH PAYK
Good diversification
The 3 months correlation between DAX and FISH is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FISH PAYK HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FISH PAYK HEALTH 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 FISH PAYK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FISH PAYK HEALTH has no effect on the direction of DAX Index i.e., DAX Index and FISH PAYK go up and down completely randomly.
Pair Corralation between DAX Index and FISH PAYK
Assuming the 90 days trading horizon DAX Index is expected to generate 2.65 times less return on investment than FISH PAYK. But when comparing it to its historical volatility, DAX Index is 2.25 times less risky than FISH PAYK. It trades about 0.13 of its potential returns per unit of risk. FISH PAYK HEALTH is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,990 in FISH PAYK HEALTH on September 3, 2024 and sell it today you would earn a total of 130.00 from holding FISH PAYK HEALTH or generate 6.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. FISH PAYK HEALTH
Performance |
Timeline |
DAX Index and FISH PAYK Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
FISH PAYK HEALTH
Pair trading matchups for FISH PAYK
Pair Trading with DAX Index and FISH PAYK
The main advantage of trading using opposite DAX Index and FISH PAYK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FISH PAYK 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 FISH PAYK will offset losses from the drop in FISH PAYK's long position.DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
FISH PAYK vs. United States Steel | FISH PAYK vs. Insteel Industries | FISH PAYK vs. Grand Canyon Education | FISH PAYK vs. ALGOMA STEEL 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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