Correlation Between DAX Index and DWS Top
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By analyzing existing cross correlation between DAX Index and DWS Top Dividende, you can compare the effects of market volatilities on DAX Index and DWS Top 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 DWS Top. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and DWS Top.
Diversification Opportunities for DAX Index and DWS Top
Excellent diversification
The 3 months correlation between DAX and DWS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and DWS Top Dividende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS Top Dividende 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 DWS Top. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS Top Dividende has no effect on the direction of DAX Index i.e., DAX Index and DWS Top go up and down completely randomly.
Pair Corralation between DAX Index and DWS Top
Assuming the 90 days trading horizon DAX Index is expected to generate 0.85 times more return on investment than DWS Top. However, DAX Index is 1.17 times less risky than DWS Top. It trades about 0.21 of its potential returns per unit of risk. DWS Top Dividende is currently generating about -0.04 per unit of risk. If you would invest 1,946,359 in DAX Index on October 25, 2024 and sell it today you would earn a total of 194,794 from holding DAX Index or generate 10.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
DAX Index vs. DWS Top Dividende
Performance |
| Timeline |
DAX Index and DWS Top Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
DWS Top Dividende
Pair trading matchups for DWS Top
Pair Trading with DAX Index and DWS Top
The main advantage of trading using opposite DAX Index and DWS Top positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, DWS Top 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 DWS Top will offset losses from the drop in DWS Top's long position.| DAX Index vs. Retail Estates NV | DAX Index vs. AEON STORES | DAX Index vs. BJs Wholesale Club | DAX Index vs. Nanjing Panda Electronics |
| DWS Top vs. CM AM Monplus NE | DWS Top vs. iShares Equity Enhanced | DWS Top vs. BEKA LUX SICAV | DWS Top vs. JPM America Equity |
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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