Correlation Between DAX Index and Healthcare Services
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By analyzing existing cross correlation between DAX Index and Healthcare Services Group, you can compare the effects of market volatilities on DAX Index and Healthcare Services 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 Healthcare Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Healthcare Services.
Diversification Opportunities for DAX Index and Healthcare Services
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and Healthcare is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Healthcare Services Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Services 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 Healthcare Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Services has no effect on the direction of DAX Index i.e., DAX Index and Healthcare Services go up and down completely randomly.
Pair Corralation between DAX Index and Healthcare Services
Assuming the 90 days trading horizon DAX Index is expected to generate 0.33 times more return on investment than Healthcare Services. However, DAX Index is 3.0 times less risky than Healthcare Services. It trades about 0.08 of its potential returns per unit of risk. Healthcare Services Group is currently generating about 0.0 per unit of risk. If you would invest 1,426,119 in DAX Index on August 28, 2024 and sell it today you would earn a total of 514,401 from holding DAX Index or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Healthcare Services Group
Performance |
| Timeline |
DAX Index and Healthcare Services Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Healthcare Services Group
Pair trading matchups for Healthcare Services
Pair Trading with DAX Index and Healthcare Services
The main advantage of trading using opposite DAX Index and Healthcare Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Healthcare Services 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 Healthcare Services will offset losses from the drop in Healthcare Services' long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| Healthcare Services vs. CompuGroup Medical SE | Healthcare Services vs. Clearside Biomedical | Healthcare Services vs. Avanos Medical | Healthcare Services vs. LGI Homes |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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