Correlation Between DAX Index and Biogen
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By analyzing existing cross correlation between DAX Index and Biogen Inc, you can compare the effects of market volatilities on DAX Index and Biogen 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 Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Biogen.
Diversification Opportunities for DAX Index and Biogen
Very good diversification
The 3 months correlation between DAX and Biogen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc 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 Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of DAX Index i.e., DAX Index and Biogen go up and down completely randomly.
Pair Corralation between DAX Index and Biogen
Assuming the 90 days trading horizon DAX Index is expected to generate 0.53 times more return on investment than Biogen. However, DAX Index is 1.89 times less risky than Biogen. It trades about 0.08 of its potential returns per unit of risk. Biogen Inc is currently generating about -0.07 per unit of risk. If you would invest 1,426,456 in DAX Index on August 29, 2024 and sell it today you would earn a total of 499,719 from holding DAX Index or generate 35.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Biogen Inc
Performance |
| Timeline |
DAX Index and Biogen Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Biogen Inc
Pair trading matchups for Biogen
Pair Trading with DAX Index and Biogen
The main advantage of trading using opposite DAX Index and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Biogen 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 Biogen will offset losses from the drop in Biogen's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| Biogen vs. CEOTRONICS | Biogen vs. Coor Service Management | Biogen vs. AGF Management Limited | Biogen vs. Jupiter Fund Management |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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