Correlation Between DAX Index and GALP ENERGIA
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By analyzing existing cross correlation between DAX Index and GALP ENERGIA B , you can compare the effects of market volatilities on DAX Index and GALP ENERGIA 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 GALP ENERGIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and GALP ENERGIA.
Diversification Opportunities for DAX Index and GALP ENERGIA
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and GALP is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and GALP ENERGIA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALP ENERGIA B 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 GALP ENERGIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALP ENERGIA B has no effect on the direction of DAX Index i.e., DAX Index and GALP ENERGIA go up and down completely randomly.
Pair Corralation between DAX Index and GALP ENERGIA
Assuming the 90 days trading horizon DAX Index is expected to generate 1.07 times less return on investment than GALP ENERGIA. But when comparing it to its historical volatility, DAX Index is 2.32 times less risky than GALP ENERGIA. It trades about 0.1 of its potential returns per unit of risk. GALP ENERGIA B is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,177 in GALP ENERGIA B on September 16, 2024 and sell it today you would earn a total of 478.00 from holding GALP ENERGIA B or generate 40.61% 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. GALP ENERGIA B
Performance |
| Timeline |
DAX Index and GALP ENERGIA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
GALP ENERGIA B
Pair trading matchups for GALP ENERGIA
Pair Trading with DAX Index and GALP ENERGIA
The main advantage of trading using opposite DAX Index and GALP ENERGIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, GALP ENERGIA 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 GALP ENERGIA will offset losses from the drop in GALP ENERGIA's long position.| DAX Index vs. PLAYTIKA HOLDING DL 01 | DAX Index vs. Eagle Materials | DAX Index vs. Materialise NV | DAX Index vs. JD SPORTS FASH |
| GALP ENERGIA vs. Apple Inc | GALP ENERGIA vs. Apple Inc | GALP ENERGIA vs. Apple Inc | GALP ENERGIA vs. Apple 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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