Correlation Between DAX Index and Esso (Thailand)
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Esso Public, you can compare the effects of market volatilities on DAX Index and Esso (Thailand) 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 Esso (Thailand). Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Esso (Thailand).
Diversification Opportunities for DAX Index and Esso (Thailand)
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and Esso is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Esso Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Esso (Thailand) 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 Esso (Thailand). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esso (Thailand) has no effect on the direction of DAX Index i.e., DAX Index and Esso (Thailand) go up and down completely randomly.
Pair Corralation between DAX Index and Esso (Thailand)
Assuming the 90 days trading horizon DAX Index is expected to generate 0.25 times more return on investment than Esso (Thailand). However, DAX Index is 4.08 times less risky than Esso (Thailand). It trades about 0.26 of its potential returns per unit of risk. Esso Public is currently generating about 0.01 per unit of risk. If you would invest 1,914,617 in DAX Index on September 22, 2024 and sell it today you would earn a total of 73,858 from holding DAX Index or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Esso Public
Performance |
| Timeline |
DAX Index and Esso (Thailand) Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Esso Public
Pair trading matchups for Esso (Thailand)
Pair Trading with DAX Index and Esso (Thailand)
The main advantage of trading using opposite DAX Index and Esso (Thailand) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Esso (Thailand) 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 Esso (Thailand) will offset losses from the drop in Esso (Thailand)'s long position.| DAX Index vs. Tradegate AG Wertpapierhandelsbank | DAX Index vs. TRADEDOUBLER AB SK | DAX Index vs. SALESFORCE INC CDR | DAX Index vs. CENTURIA OFFICE REIT |
| Esso (Thailand) vs. Superior Plus Corp | Esso (Thailand) vs. SIVERS SEMICONDUCTORS AB | Esso (Thailand) vs. Norsk Hydro ASA | Esso (Thailand) vs. Reliance Steel Aluminum |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |