Correlation Between DAX Index and Jazz Pharmaceuticals
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Jazz Pharmaceuticals plc, you can compare the effects of market volatilities on DAX Index and Jazz Pharmaceuticals 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 Jazz Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Jazz Pharmaceuticals.
Diversification Opportunities for DAX Index and Jazz Pharmaceuticals
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Jazz is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Jazz Pharmaceuticals plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jazz Pharmaceuticals plc 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 Jazz Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jazz Pharmaceuticals plc has no effect on the direction of DAX Index i.e., DAX Index and Jazz Pharmaceuticals go up and down completely randomly.
Pair Corralation between DAX Index and Jazz Pharmaceuticals
Assuming the 90 days trading horizon DAX Index is expected to generate 0.47 times more return on investment than Jazz Pharmaceuticals. However, DAX Index is 2.14 times less risky than Jazz Pharmaceuticals. It trades about 0.08 of its potential returns per unit of risk. Jazz Pharmaceuticals plc is currently generating about -0.02 per unit of risk. If you would invest 1,443,631 in DAX Index on September 26, 2024 and sell it today you would earn a total of 541,246 from holding DAX Index or generate 37.49% 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. Jazz Pharmaceuticals plc
Performance |
| Timeline |
DAX Index and Jazz Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Jazz Pharmaceuticals plc
Pair trading matchups for Jazz Pharmaceuticals
Pair Trading with DAX Index and Jazz Pharmaceuticals
The main advantage of trading using opposite DAX Index and Jazz Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Jazz Pharmaceuticals 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 Jazz Pharmaceuticals will offset losses from the drop in Jazz Pharmaceuticals' long position.| DAX Index vs. URBAN OUTFITTERS | DAX Index vs. DATANG INTL POW | DAX Index vs. Magnachip Semiconductor | DAX Index vs. Datang International Power |
| Jazz Pharmaceuticals vs. Novo Nordisk AS | Jazz Pharmaceuticals vs. Mercedes Benz Group AG | Jazz Pharmaceuticals vs. Moderna | Jazz Pharmaceuticals vs. WUXI BIOLOGICS UNSPADR2 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |