Correlation Between DAX Index and Fuji Media
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By analyzing existing cross correlation between DAX Index and Fuji Media Holdings, you can compare the effects of market volatilities on DAX Index and Fuji Media 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Fuji Media.
Diversification Opportunities for DAX Index and Fuji Media
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Fuji is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of DAX Index i.e., DAX Index and Fuji Media go up and down completely randomly.
Pair Corralation between DAX Index and Fuji Media
Assuming the 90 days trading horizon DAX Index is expected to generate 1.19 times less return on investment than Fuji Media. But when comparing it to its historical volatility, DAX Index is 1.84 times less risky than Fuji Media. It trades about 0.07 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Fuji Media Holdings on September 2, 2024 and sell it today you would earn a total of 40.00 from holding Fuji Media Holdings or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Fuji Media Holdings
Performance |
| Timeline |
DAX Index and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Fuji Media Holdings
Pair trading matchups for Fuji Media
Pair Trading with DAX Index and Fuji Media
The main advantage of trading using opposite DAX Index and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Fuji Media vs. Rai Way SpA | Fuji Media vs. Superior Plus Corp | Fuji Media vs. NMI Holdings | Fuji Media vs. Origin Agritech |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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