Correlation Between DAX Index and International Bancshares
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By analyzing existing cross correlation between DAX Index and International Bancshares, you can compare the effects of market volatilities on DAX Index and International Bancshares 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 International Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and International Bancshares.
Diversification Opportunities for DAX Index and International Bancshares
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and International is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and International Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Bancshares 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 International Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bancshares has no effect on the direction of DAX Index i.e., DAX Index and International Bancshares go up and down completely randomly.
Pair Corralation between DAX Index and International Bancshares
Assuming the 90 days trading horizon DAX Index is expected to generate 0.34 times more return on investment than International Bancshares. However, DAX Index is 2.98 times less risky than International Bancshares. It trades about 0.25 of its potential returns per unit of risk. International Bancshares is currently generating about 0.07 per unit of risk. If you would invest 1,733,900 in DAX Index on November 3, 2024 and sell it today you would earn a total of 439,305 from holding DAX Index or generate 25.34% 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. International Bancshares
Performance |
| Timeline |
DAX Index and International Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
International Bancshares
Pair trading matchups for International Bancshares
Pair Trading with DAX Index and International Bancshares
The main advantage of trading using opposite DAX Index and International Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, International Bancshares 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 International Bancshares will offset losses from the drop in International Bancshares' long position.| DAX Index vs. ANTA SPORTS PRODUCT | DAX Index vs. SCIENCE IN SPORT | DAX Index vs. Columbia Sportswear | DAX Index vs. Pebblebrook Hotel Trust |
| International Bancshares vs. DISTRICT METALS | International Bancshares vs. FIREWEED METALS P | International Bancshares vs. ARDAGH METAL PACDL 0001 | International Bancshares vs. Perseus Mining Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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