Correlation Between DAX Index and INDOSAT -B-
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By analyzing existing cross correlation between DAX Index and INDOSAT B , you can compare the effects of market volatilities on DAX Index and INDOSAT -B- 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 INDOSAT -B-. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and INDOSAT -B-.
Diversification Opportunities for DAX Index and INDOSAT -B-
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and INDOSAT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and INDOSAT B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDOSAT -B- 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 INDOSAT -B-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDOSAT -B- has no effect on the direction of DAX Index i.e., DAX Index and INDOSAT -B- go up and down completely randomly.
Pair Corralation between DAX Index and INDOSAT -B-
Assuming the 90 days trading horizon DAX Index is expected to generate 0.07 times more return on investment than INDOSAT -B-. However, DAX Index is 13.41 times less risky than INDOSAT -B-. It trades about 0.59 of its potential returns per unit of risk. INDOSAT B is currently generating about 0.04 per unit of risk. If you would invest 2,002,466 in DAX Index on November 3, 2024 and sell it today you would earn a total of 170,739 from holding DAX Index or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. INDOSAT B
Performance |
| Timeline |
DAX Index and INDOSAT -B- Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
INDOSAT B
Pair trading matchups for INDOSAT -B-
Pair Trading with DAX Index and INDOSAT -B-
The main advantage of trading using opposite DAX Index and INDOSAT -B- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, INDOSAT -B- 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 INDOSAT -B- will offset losses from the drop in INDOSAT -B-'s 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 |
| INDOSAT -B- vs. GRENKELEASING Dusseldorf | INDOSAT -B- vs. WILLIS LEASE FIN | INDOSAT -B- vs. Solstad Offshore ASA | INDOSAT -B- vs. Luckin Coffee |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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