Correlation Between DAX Index and FF South
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By analyzing existing cross correlation between DAX Index and FF South, you can compare the effects of market volatilities on DAX Index and FF South 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 FF South. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FF South.
Diversification Opportunities for DAX Index and FF South
Poor diversification
The 3 months correlation between DAX and IPGS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FF South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FF South 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 FF South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FF South has no effect on the direction of DAX Index i.e., DAX Index and FF South go up and down completely randomly.
Pair Corralation between DAX Index and FF South
Assuming the 90 days trading horizon DAX Index is expected to generate 1.0 times more return on investment than FF South. However, DAX Index is 1.0 times less risky than FF South. It trades about -0.03 of its potential returns per unit of risk. FF South is currently generating about -0.05 per unit of risk. If you would invest 1,946,359 in DAX Index on August 26, 2024 and sell it today you would lose (14,100) from holding DAX Index or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. FF South
Performance |
| Timeline |
DAX Index and FF South Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
FF South
Pair trading matchups for FF South
Pair Trading with DAX Index and FF South
The main advantage of trading using opposite DAX Index and FF South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FF South 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 FF South will offset losses from the drop in FF South's long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| FF South vs. Esfera Robotics R | FF South vs. R co Valor F | FF South vs. CM AM Monplus NE | FF South vs. IE00B0H4TS55 |
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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