Correlation Between DAX Index and KEISEI EL
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By analyzing existing cross correlation between DAX Index and KEISEI EL RAILWAY, you can compare the effects of market volatilities on DAX Index and KEISEI EL 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 KEISEI EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and KEISEI EL.
Diversification Opportunities for DAX Index and KEISEI EL
Very weak diversification
The 3 months correlation between DAX and KEISEI is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and KEISEI EL RAILWAY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEISEI EL RAILWAY 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 KEISEI EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEISEI EL RAILWAY has no effect on the direction of DAX Index i.e., DAX Index and KEISEI EL go up and down completely randomly.
Pair Corralation between DAX Index and KEISEI EL
Assuming the 90 days trading horizon DAX Index is expected to generate 3.27 times less return on investment than KEISEI EL. But when comparing it to its historical volatility, DAX Index is 5.46 times less risky than KEISEI EL. It trades about 0.08 of its potential returns per unit of risk. KEISEI EL RAILWAY is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 441.00 in KEISEI EL RAILWAY on October 13, 2024 and sell it today you would earn a total of 424.00 from holding KEISEI EL RAILWAY or generate 96.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. KEISEI EL RAILWAY
Performance |
| Timeline |
DAX Index and KEISEI EL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
KEISEI EL RAILWAY
Pair trading matchups for KEISEI EL
Pair Trading with DAX Index and KEISEI EL
The main advantage of trading using opposite DAX Index and KEISEI EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, KEISEI EL 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 KEISEI EL will offset losses from the drop in KEISEI EL's long position.| DAX Index vs. CAIRN HOMES EO | DAX Index vs. Forsys Metals Corp | DAX Index vs. Taylor Morrison Home | DAX Index vs. Hisense Home Appliances |
| KEISEI EL vs. Jacquet Metal Service | KEISEI EL vs. Iridium Communications | KEISEI EL vs. GRIFFIN MINING LTD | KEISEI EL vs. Harmony Gold Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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