Correlation Between DAX Index and OLAM GROUP
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By analyzing existing cross correlation between DAX Index and OLAM GROUP LTD, you can compare the effects of market volatilities on DAX Index and OLAM GROUP 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 OLAM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and OLAM GROUP.
Diversification Opportunities for DAX Index and OLAM GROUP
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and OLAM is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and OLAM GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OLAM GROUP LTD 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 OLAM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OLAM GROUP LTD has no effect on the direction of DAX Index i.e., DAX Index and OLAM GROUP go up and down completely randomly.
Pair Corralation between DAX Index and OLAM GROUP
Assuming the 90 days trading horizon DAX Index is expected to generate 1.37 times less return on investment than OLAM GROUP. But when comparing it to its historical volatility, DAX Index is 5.08 times less risky than OLAM GROUP. It trades about 0.08 of its potential returns per unit of risk. OLAM GROUP LTD is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 80.00 in OLAM GROUP LTD on September 2, 2024 and sell it today you would earn a total of 3.00 from holding OLAM GROUP LTD or generate 3.75% 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. OLAM GROUP LTD
Performance |
| Timeline |
DAX Index and OLAM GROUP Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
OLAM GROUP LTD
Pair trading matchups for OLAM GROUP
Pair Trading with DAX Index and OLAM GROUP
The main advantage of trading using opposite DAX Index and OLAM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, OLAM GROUP 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 OLAM GROUP will offset losses from the drop in OLAM GROUP's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| OLAM GROUP vs. UNIVMUSIC GRPADR050 | OLAM GROUP vs. SBA Communications Corp | OLAM GROUP vs. PLAYTIKA HOLDING DL 01 | OLAM GROUP vs. Tencent Music Entertainment |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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