Correlation Between DAX Index and BROADPEAK
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By analyzing existing cross correlation between DAX Index and BROADPEAK SA EO, you can compare the effects of market volatilities on DAX Index and BROADPEAK 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 BROADPEAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and BROADPEAK.
Diversification Opportunities for DAX Index and BROADPEAK
Very good diversification
The 3 months correlation between DAX and BROADPEAK is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and BROADPEAK SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROADPEAK SA EO 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 BROADPEAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROADPEAK SA EO has no effect on the direction of DAX Index i.e., DAX Index and BROADPEAK go up and down completely randomly.
Pair Corralation between DAX Index and BROADPEAK
Assuming the 90 days trading horizon DAX Index is expected to generate 0.58 times more return on investment than BROADPEAK. However, DAX Index is 1.73 times less risky than BROADPEAK. It trades about 0.62 of its potential returns per unit of risk. BROADPEAK SA EO is currently generating about 0.1 per unit of risk. If you would invest 2,021,619 in DAX Index on November 7, 2024 and sell it today you would earn a total of 151,586 from holding DAX Index or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
DAX Index vs. BROADPEAK SA EO
Performance |
| Timeline |
DAX Index and BROADPEAK Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
BROADPEAK SA EO
Pair trading matchups for BROADPEAK
Pair Trading with DAX Index and BROADPEAK
The main advantage of trading using opposite DAX Index and BROADPEAK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, BROADPEAK 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 BROADPEAK will offset losses from the drop in BROADPEAK's long position.| DAX Index vs. RCI Hospitality Holdings | DAX Index vs. ecotel communication ag | DAX Index vs. Universal Health Realty | DAX Index vs. Infrastrutture Wireless Italiane |
| BROADPEAK vs. Alaska Air Group | BROADPEAK vs. Altair Engineering | BROADPEAK vs. NORWEGIAN AIR SHUT | BROADPEAK vs. SENECA FOODS A |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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