Correlation Between DAX Index and John Bean
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By analyzing existing cross correlation between DAX Index and John Bean Technologies, you can compare the effects of market volatilities on DAX Index and John Bean 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 John Bean. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and John Bean.
Diversification Opportunities for DAX Index and John Bean
Very weak diversification
The 3 months correlation between DAX and John is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and John Bean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Bean Technologies 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 John Bean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Bean Technologies has no effect on the direction of DAX Index i.e., DAX Index and John Bean go up and down completely randomly.
Pair Corralation between DAX Index and John Bean
Assuming the 90 days trading horizon DAX Index is expected to generate 5.93 times less return on investment than John Bean. But when comparing it to its historical volatility, DAX Index is 2.68 times less risky than John Bean. It trades about 0.05 of its potential returns per unit of risk. John Bean Technologies is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,489 in John Bean Technologies on September 3, 2024 and sell it today you would earn a total of 3,211 from holding John Bean Technologies or generate 37.83% 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. John Bean Technologies
Performance |
| Timeline |
DAX Index and John Bean Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
John Bean Technologies
Pair trading matchups for John Bean
Pair Trading with DAX Index and John Bean
The main advantage of trading using opposite DAX Index and John Bean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, John Bean 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 John Bean will offset losses from the drop in John Bean's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| John Bean vs. ANTA SPORTS PRODUCT | John Bean vs. WILLIS LEASE FIN | John Bean vs. Ming Le Sports | John Bean vs. USWE SPORTS AB |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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