Correlation Between DAX Index and ImagineAR
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By analyzing existing cross correlation between DAX Index and ImagineAR, you can compare the effects of market volatilities on DAX Index and ImagineAR 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 ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ImagineAR.
Diversification Opportunities for DAX Index and ImagineAR
Very good diversification
The 3 months correlation between DAX and ImagineAR is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR 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 ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of DAX Index i.e., DAX Index and ImagineAR go up and down completely randomly.
Pair Corralation between DAX Index and ImagineAR
Assuming the 90 days trading horizon DAX Index is expected to generate 11.22 times less return on investment than ImagineAR. But when comparing it to its historical volatility, DAX Index is 15.34 times less risky than ImagineAR. It trades about 0.09 of its potential returns per unit of risk. ImagineAR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2.15 in ImagineAR on September 23, 2024 and sell it today you would earn a total of 2.15 from holding ImagineAR or generate 100.0% 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. ImagineAR
Performance |
| Timeline |
DAX Index and ImagineAR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ImagineAR
Pair trading matchups for ImagineAR
Pair Trading with DAX Index and ImagineAR
The main advantage of trading using opposite DAX Index and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR's long position.| DAX Index vs. alstria office REIT AG | DAX Index vs. OFFICE DEPOT | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. MAVEN WIRELESS SWEDEN |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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