Correlation Between DAX Index and Jerónimo Martins
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By analyzing existing cross correlation between DAX Index and Jernimo Martins SGPS, you can compare the effects of market volatilities on DAX Index and Jerónimo Martins 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 Jerónimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Jerónimo Martins.
Diversification Opportunities for DAX Index and Jerónimo Martins
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Jerónimo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Jernimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jernimo Martins SGPS 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 Jerónimo Martins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jernimo Martins SGPS has no effect on the direction of DAX Index i.e., DAX Index and Jerónimo Martins go up and down completely randomly.
Pair Corralation between DAX Index and Jerónimo Martins
Assuming the 90 days trading horizon DAX Index is expected to generate 0.41 times more return on investment than Jerónimo Martins. However, DAX Index is 2.45 times less risky than Jerónimo Martins. It trades about 0.08 of its potential returns per unit of risk. Jernimo Martins SGPS is currently generating about -0.02 per unit of risk. If you would invest 1,609,787 in DAX Index on September 4, 2024 and sell it today you would earn a total of 383,575 from holding DAX Index or generate 23.83% 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. Jernimo Martins SGPS
Performance |
| Timeline |
DAX Index and Jerónimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Jernimo Martins SGPS
Pair trading matchups for Jerónimo Martins
Pair Trading with DAX Index and Jerónimo Martins
The main advantage of trading using opposite DAX Index and Jerónimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Jerónimo Martins 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 Jerónimo Martins will offset losses from the drop in Jerónimo Martins' long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| Jerónimo Martins vs. Performance Food Group | Jerónimo Martins vs. Superior Plus Corp | Jerónimo Martins vs. NMI Holdings | Jerónimo Martins vs. Origin Agritech |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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