Correlation Between DAX Index and Global Payments
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By analyzing existing cross correlation between DAX Index and Global Payments, you can compare the effects of market volatilities on DAX Index and Global Payments 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 Global Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Global Payments.
Diversification Opportunities for DAX Index and Global Payments
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Global is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Global Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 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 Global Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments has no effect on the direction of DAX Index i.e., DAX Index and Global Payments go up and down completely randomly.
Pair Corralation between DAX Index and Global Payments
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Global Payments. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 3.02 times less risky than Global Payments. The index trades about -0.05 of its potential returns per unit of risk. The Global Payments is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 9,310 in Global Payments on August 30, 2024 and sell it today you would earn a total of 1,820 from holding Global Payments or generate 19.55% 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. Global Payments
Performance |
| Timeline |
DAX Index and Global Payments Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Global Payments
Pair trading matchups for Global Payments
Pair Trading with DAX Index and Global Payments
The main advantage of trading using opposite DAX Index and Global Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Global Payments 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 Global Payments will offset losses from the drop in Global Payments' long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| Global Payments vs. Superior Plus Corp | Global Payments vs. SIVERS SEMICONDUCTORS AB | Global Payments vs. Talanx AG | Global Payments vs. 2G ENERGY |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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