Correlation Between DAX Index and IShares JP
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By analyzing existing cross correlation between DAX Index and iShares JP Morgan, you can compare the effects of market volatilities on DAX Index and IShares JP 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 IShares JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and IShares JP.
Diversification Opportunities for DAX Index and IShares JP
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and IShares is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and iShares JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares JP Morgan 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 IShares JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares JP Morgan has no effect on the direction of DAX Index i.e., DAX Index and IShares JP go up and down completely randomly.
Pair Corralation between DAX Index and IShares JP
Assuming the 90 days trading horizon DAX Index is expected to under-perform the IShares JP. In addition to that, DAX Index is 1.64 times more volatile than iShares JP Morgan. It trades about -0.01 of its total potential returns per unit of risk. iShares JP Morgan is currently generating about 0.28 per unit of volatility. If you would invest 530.00 in iShares JP Morgan on August 30, 2024 and sell it today you would earn a total of 20.00 from holding iShares JP Morgan or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. iShares JP Morgan
Performance |
| Timeline |
DAX Index and IShares JP Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
iShares JP Morgan
Pair trading matchups for IShares JP
Pair Trading with DAX Index and IShares JP
The main advantage of trading using opposite DAX Index and IShares JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, IShares JP 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 IShares JP will offset losses from the drop in IShares JP's long position.| DAX Index vs. NEWELL RUBBERMAID | DAX Index vs. APPLIED MATERIALS | DAX Index vs. Compagnie Plastic Omnium | DAX Index vs. Vulcan Materials |
| IShares JP vs. UBS Fund Solutions | IShares JP vs. Xtrackers II | IShares JP vs. Xtrackers Nikkei 225 | IShares JP vs. iShares VII PLC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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