Correlation Between DAX Index and Yuexiu Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on DAX Index and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Yuexiu Transport.
Diversification Opportunities for DAX Index and Yuexiu Transport
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Yuexiu is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of DAX Index i.e., DAX Index and Yuexiu Transport go up and down completely randomly.
Pair Corralation between DAX Index and Yuexiu Transport
Assuming the 90 days trading horizon DAX Index is expected to generate 7.19 times less return on investment than Yuexiu Transport. But when comparing it to its historical volatility, DAX Index is 5.84 times less risky than Yuexiu Transport. It trades about 0.06 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Yuexiu Transport Infrastructure on August 27, 2024 and sell it today you would earn a total of 17.00 from holding Yuexiu Transport Infrastructure or generate 65.38% 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. Yuexiu Transport Infrastructur
Performance |
| Timeline |
DAX Index and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Yuexiu Transport Infrastructure
Pair trading matchups for Yuexiu Transport
Pair Trading with DAX Index and Yuexiu Transport
The main advantage of trading using opposite DAX Index and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Arcosa Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |