Correlation Between DAX Index and DOLFINES
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By analyzing existing cross correlation between DAX Index and DOLFINES SA EO, you can compare the effects of market volatilities on DAX Index and DOLFINES 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 DOLFINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and DOLFINES.
Diversification Opportunities for DAX Index and DOLFINES
Weak diversification
The 3 months correlation between DAX and DOLFINES is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and DOLFINES SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOLFINES 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 DOLFINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOLFINES SA EO has no effect on the direction of DAX Index i.e., DAX Index and DOLFINES go up and down completely randomly.
Pair Corralation between DAX Index and DOLFINES
Assuming the 90 days trading horizon DAX Index is expected to generate 21.13 times less return on investment than DOLFINES. But when comparing it to its historical volatility, DAX Index is 11.78 times less risky than DOLFINES. It trades about 0.13 of its potential returns per unit of risk. DOLFINES SA EO is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 143.00 in DOLFINES SA EO on October 18, 2024 and sell it today you would earn a total of 30.00 from holding DOLFINES SA EO or generate 20.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 64.71% |
| Values | Daily Returns |
DAX Index vs. DOLFINES SA EO
Performance |
| Timeline |
DAX Index and DOLFINES Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
DOLFINES SA EO
Pair trading matchups for DOLFINES
Pair Trading with DAX Index and DOLFINES
The main advantage of trading using opposite DAX Index and DOLFINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, DOLFINES 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 DOLFINES will offset losses from the drop in DOLFINES's long position.| DAX Index vs. CyberArk Software | DAX Index vs. Lendlease Group | DAX Index vs. PSI Software AG | DAX Index vs. Take Two Interactive Software |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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