Correlation Between DAX Index and Hongkong
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By analyzing existing cross correlation between DAX Index and The Hongkong and, you can compare the effects of market volatilities on DAX Index and Hongkong 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 Hongkong. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Hongkong.
Diversification Opportunities for DAX Index and Hongkong
Poor diversification
The 3 months correlation between DAX and Hongkong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and The Hongkong and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hongkong 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 Hongkong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hongkong has no effect on the direction of DAX Index i.e., DAX Index and Hongkong go up and down completely randomly.
Pair Corralation between DAX Index and Hongkong
Assuming the 90 days trading horizon DAX Index is expected to generate 0.27 times more return on investment than Hongkong. However, DAX Index is 3.76 times less risky than Hongkong. It trades about 0.08 of its potential returns per unit of risk. The Hongkong and is currently generating about 0.0 per unit of risk. If you would invest 1,503,356 in DAX Index on October 11, 2024 and sell it today you would earn a total of 528,354 from holding DAX Index or generate 35.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. The Hongkong and
Performance |
| Timeline |
DAX Index and Hongkong Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
The Hongkong and
Pair trading matchups for Hongkong
Pair Trading with DAX Index and Hongkong
The main advantage of trading using opposite DAX Index and Hongkong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Hongkong 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 Hongkong will offset losses from the drop in Hongkong's long position.| DAX Index vs. Scottish Mortgage Investment | DAX Index vs. Keck Seng Investments | DAX Index vs. Lendlease Group | DAX Index vs. FIRST SAVINGS FINL |
| Hongkong vs. Semiconductor Manufacturing International | Hongkong vs. AEON METALS LTD | Hongkong vs. Elmos Semiconductor SE | Hongkong vs. ON SEMICONDUCTOR |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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