Correlation Between DAX Index and HIGHTECH PAYMENT
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By analyzing existing cross correlation between DAX Index and HIGHTECH PAYMENT SYSTEMS, you can compare the effects of market volatilities on DAX Index and HIGHTECH PAYMENT 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 HIGHTECH PAYMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and HIGHTECH PAYMENT.
Diversification Opportunities for DAX Index and HIGHTECH PAYMENT
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and HIGHTECH is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and HIGHTECH PAYMENT SYSTEMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIGHTECH PAYMENT SYSTEMS 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 HIGHTECH PAYMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIGHTECH PAYMENT SYSTEMS has no effect on the direction of DAX Index i.e., DAX Index and HIGHTECH PAYMENT go up and down completely randomly.
Pair Corralation between DAX Index and HIGHTECH PAYMENT
Assuming the 90 days trading horizon DAX Index is expected to generate 0.4 times more return on investment than HIGHTECH PAYMENT. However, DAX Index is 2.5 times less risky than HIGHTECH PAYMENT. It trades about 0.33 of its potential returns per unit of risk. HIGHTECH PAYMENT SYSTEMS is currently generating about -0.02 per unit of risk. If you would invest 2,128,218 in DAX Index on November 28, 2024 and sell it today you would earn a total of 151,193 from holding DAX Index or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. HIGHTECH PAYMENT SYSTEMS
Performance |
| Timeline |
DAX Index and HIGHTECH PAYMENT Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
HIGHTECH PAYMENT SYSTEMS
Pair trading matchups for HIGHTECH PAYMENT
Pair Trading with DAX Index and HIGHTECH PAYMENT
The main advantage of trading using opposite DAX Index and HIGHTECH PAYMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, HIGHTECH PAYMENT 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 HIGHTECH PAYMENT will offset losses from the drop in HIGHTECH PAYMENT's long position.| DAX Index vs. TRAVEL LEISURE DL 01 | DAX Index vs. COLUMBIA SPORTSWEAR | DAX Index vs. InPlay Oil Corp | DAX Index vs. MAVEN WIRELESS SWEDEN |
| HIGHTECH PAYMENT vs. BANK OF AFRICA | HIGHTECH PAYMENT vs. MAROC LEASING | HIGHTECH PAYMENT vs. MICRODATA | HIGHTECH PAYMENT vs. ATTIJARIWAFA BANK |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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