Correlation Between DAX Index and International Flavors
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and International Flavors Fragrances, you can compare the effects of market volatilities on DAX Index and International Flavors 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 Flavors. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and International Flavors.
Diversification Opportunities for DAX Index and International Flavors
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and International is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and International Flavors Fragranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Flavors 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 Flavors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Flavors has no effect on the direction of DAX Index i.e., DAX Index and International Flavors go up and down completely randomly.
Pair Corralation between DAX Index and International Flavors
Assuming the 90 days trading horizon DAX Index is expected to generate 0.33 times more return on investment than International Flavors. However, DAX Index is 3.01 times less risky than International Flavors. It trades about 0.05 of its potential returns per unit of risk. International Flavors Fragrances is currently generating about -0.09 per unit of risk. If you would invest 1,925,734 in DAX Index on August 31, 2024 and sell it today you would earn a total of 16,839 from holding DAX Index or generate 0.87% 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. International Flavors Fragranc
Performance |
| Timeline |
DAX Index and International Flavors Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
International Flavors Fragrances
Pair trading matchups for International Flavors
Pair Trading with DAX Index and International Flavors
The main advantage of trading using opposite DAX Index and International Flavors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, International Flavors 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 Flavors will offset losses from the drop in International Flavors' long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| International Flavors vs. Soken Chemical Engineering | International Flavors vs. National Beverage Corp | International Flavors vs. Sekisui Chemical Co | International Flavors vs. China BlueChemical |
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.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |