Correlation Between DAX Index and Illumina
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By analyzing existing cross correlation between DAX Index and Illumina, you can compare the effects of market volatilities on DAX Index and Illumina 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 Illumina. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Illumina.
Diversification Opportunities for DAX Index and Illumina
Poor diversification
The 3 months correlation between DAX and Illumina is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Illumina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Illumina 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 Illumina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Illumina has no effect on the direction of DAX Index i.e., DAX Index and Illumina go up and down completely randomly.
Pair Corralation between DAX Index and Illumina
Assuming the 90 days trading horizon DAX Index is expected to generate 6.19 times less return on investment than Illumina. But when comparing it to its historical volatility, DAX Index is 2.93 times less risky than Illumina. It trades about 0.05 of its potential returns per unit of risk. Illumina is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,756 in Illumina on September 3, 2024 and sell it today you would earn a total of 3,816 from holding Illumina or generate 39.11% 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. Illumina
Performance |
| Timeline |
DAX Index and Illumina Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Illumina
Pair trading matchups for Illumina
Pair Trading with DAX Index and Illumina
The main advantage of trading using opposite DAX Index and Illumina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Illumina 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 Illumina will offset losses from the drop in Illumina's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Illumina vs. WT OFFSHORE | Illumina vs. PLAYTIKA HOLDING DL 01 | Illumina vs. JD SPORTS FASH | Illumina vs. EIDESVIK OFFSHORE NK |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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