Correlation Between DAX Index and FAST RETAILCOSPHDR
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By analyzing existing cross correlation between DAX Index and FAST RETAILCOSPHDR 1, you can compare the effects of market volatilities on DAX Index and FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FAST RETAILCOSPHDR.
Diversification Opportunities for DAX Index and FAST RETAILCOSPHDR
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and FAST is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FAST RETAILCOSPHDR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAILCOSPHDR has no effect on the direction of DAX Index i.e., DAX Index and FAST RETAILCOSPHDR go up and down completely randomly.
Pair Corralation between DAX Index and FAST RETAILCOSPHDR
Assuming the 90 days trading horizon DAX Index is expected to generate 1.56 times less return on investment than FAST RETAILCOSPHDR. But when comparing it to its historical volatility, DAX Index is 2.16 times less risky than FAST RETAILCOSPHDR. It trades about 0.14 of its potential returns per unit of risk. FAST RETAILCOSPHDR 1 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 284.00 in FAST RETAILCOSPHDR 1 on September 1, 2024 and sell it today you would earn a total of 12.00 from holding FAST RETAILCOSPHDR 1 or generate 4.23% 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. FAST RETAILCOSPHDR 1
Performance |
| Timeline |
DAX Index and FAST RETAILCOSPHDR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
FAST RETAILCOSPHDR 1
Pair trading matchups for FAST RETAILCOSPHDR
Pair Trading with DAX Index and FAST RETAILCOSPHDR
The main advantage of trading using opposite DAX Index and FAST RETAILCOSPHDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FAST RETAILCOSPHDR 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 FAST RETAILCOSPHDR will offset losses from the drop in FAST RETAILCOSPHDR's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| FAST RETAILCOSPHDR vs. Zurich Insurance Group | FAST RETAILCOSPHDR vs. Jacquet Metal Service | FAST RETAILCOSPHDR vs. Evolution Mining Limited | FAST RETAILCOSPHDR vs. Direct Line Insurance |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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