Correlation Between DAX Index and GLOBUS MEDICAL-A
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and GLOBUS MEDICAL A, you can compare the effects of market volatilities on DAX Index and GLOBUS MEDICAL-A 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 GLOBUS MEDICAL-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and GLOBUS MEDICAL-A.
Diversification Opportunities for DAX Index and GLOBUS MEDICAL-A
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and GLOBUS is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and GLOBUS MEDICAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBUS MEDICAL A 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 GLOBUS MEDICAL-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBUS MEDICAL A has no effect on the direction of DAX Index i.e., DAX Index and GLOBUS MEDICAL-A go up and down completely randomly.
Pair Corralation between DAX Index and GLOBUS MEDICAL-A
Assuming the 90 days trading horizon DAX Index is expected to under-perform the GLOBUS MEDICAL-A. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 3.25 times less risky than GLOBUS MEDICAL-A. The index trades about -0.03 of its potential returns per unit of risk. The GLOBUS MEDICAL A is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 7,850 in GLOBUS MEDICAL A on October 12, 2024 and sell it today you would earn a total of 700.00 from holding GLOBUS MEDICAL A or generate 8.92% 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. GLOBUS MEDICAL A
Performance |
| Timeline |
DAX Index and GLOBUS MEDICAL-A Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
GLOBUS MEDICAL A
Pair trading matchups for GLOBUS MEDICAL-A
Pair Trading with DAX Index and GLOBUS MEDICAL-A
The main advantage of trading using opposite DAX Index and GLOBUS MEDICAL-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, GLOBUS MEDICAL-A 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 GLOBUS MEDICAL-A will offset losses from the drop in GLOBUS MEDICAL-A's long position.| DAX Index vs. Scottish Mortgage Investment | DAX Index vs. Keck Seng Investments | DAX Index vs. Lendlease Group | DAX Index vs. FIRST SAVINGS FINL |
| GLOBUS MEDICAL-A vs. Plastic Omnium | GLOBUS MEDICAL-A vs. The Yokohama Rubber | GLOBUS MEDICAL-A vs. Materialise NV | GLOBUS MEDICAL-A vs. TOREX SEMICONDUCTOR LTD |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |