Correlation Between DAX Index and Jupiter Energy
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By analyzing existing cross correlation between DAX Index and Jupiter Energy Limited, you can compare the effects of market volatilities on DAX Index and Jupiter Energy 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 Jupiter Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Jupiter Energy.
Diversification Opportunities for DAX Index and Jupiter Energy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Jupiter is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Jupiter Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Energy 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 Jupiter Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Energy has no effect on the direction of DAX Index i.e., DAX Index and Jupiter Energy go up and down completely randomly.
Pair Corralation between DAX Index and Jupiter Energy
Assuming the 90 days trading horizon DAX Index is expected to generate 11.29 times less return on investment than Jupiter Energy. But when comparing it to its historical volatility, DAX Index is 46.15 times less risky than Jupiter Energy. It trades about 0.54 of its potential returns per unit of risk. Jupiter Energy Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.10 in Jupiter Energy Limited on October 25, 2024 and sell it today you would earn a total of 0.10 from holding Jupiter Energy Limited or generate 9.09% 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. Jupiter Energy Limited
Performance |
| Timeline |
DAX Index and Jupiter Energy Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Jupiter Energy Limited
Pair trading matchups for Jupiter Energy
Pair Trading with DAX Index and Jupiter Energy
The main advantage of trading using opposite DAX Index and Jupiter Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Jupiter Energy 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 Jupiter Energy will offset losses from the drop in Jupiter Energy's long position.| DAX Index vs. Retail Estates NV | DAX Index vs. AEON STORES | DAX Index vs. BJs Wholesale Club | DAX Index vs. Nanjing Panda Electronics |
| Jupiter Energy vs. S E BANKEN A | Jupiter Energy vs. FAST RETAIL ADR | Jupiter Energy vs. Ameriprise Financial | Jupiter Energy vs. Chiba Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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