Correlation Between DAX Index and WINMARK
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By analyzing existing cross correlation between DAX Index and WINMARK, you can compare the effects of market volatilities on DAX Index and WINMARK 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 WINMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and WINMARK.
Diversification Opportunities for DAX Index and WINMARK
Very weak diversification
The 3 months correlation between DAX and WINMARK is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and WINMARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WINMARK 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 WINMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WINMARK has no effect on the direction of DAX Index i.e., DAX Index and WINMARK go up and down completely randomly.
Pair Corralation between DAX Index and WINMARK
Assuming the 90 days trading horizon DAX Index is expected to generate 0.39 times more return on investment than WINMARK. However, DAX Index is 2.56 times less risky than WINMARK. It trades about 0.1 of its potential returns per unit of risk. WINMARK is currently generating about 0.0 per unit of risk. If you would invest 1,679,443 in DAX Index on September 4, 2024 and sell it today you would earn a total of 322,232 from holding DAX Index or generate 19.19% 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. WINMARK
Performance |
| Timeline |
DAX Index and WINMARK Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
WINMARK
Pair trading matchups for WINMARK
Pair Trading with DAX Index and WINMARK
The main advantage of trading using opposite DAX Index and WINMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, WINMARK 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 WINMARK will offset losses from the drop in WINMARK'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 |
| WINMARK vs. SALESFORCE INC CDR | WINMARK vs. AOI Electronics Co | WINMARK vs. STORE ELECTRONIC | WINMARK vs. GungHo Online Entertainment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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