Correlation Between DAX Index and KEYCORP Dusseldorf
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By analyzing existing cross correlation between DAX Index and KEYCORP Dusseldorf, you can compare the effects of market volatilities on DAX Index and KEYCORP Dusseldorf 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 KEYCORP Dusseldorf. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and KEYCORP Dusseldorf.
Diversification Opportunities for DAX Index and KEYCORP Dusseldorf
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and KEYCORP is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and KEYCORP Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP Dusseldorf 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 KEYCORP Dusseldorf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYCORP Dusseldorf has no effect on the direction of DAX Index i.e., DAX Index and KEYCORP Dusseldorf go up and down completely randomly.
Pair Corralation between DAX Index and KEYCORP Dusseldorf
Assuming the 90 days trading horizon DAX Index is expected to under-perform the KEYCORP Dusseldorf. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 4.02 times less risky than KEYCORP Dusseldorf. The index trades about -0.05 of its potential returns per unit of risk. The KEYCORP Dusseldorf is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,575 in KEYCORP Dusseldorf on August 24, 2024 and sell it today you would earn a total of 293.00 from holding KEYCORP Dusseldorf or generate 18.6% 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. KEYCORP Dusseldorf
Performance |
| Timeline |
DAX Index and KEYCORP Dusseldorf Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
KEYCORP Dusseldorf
Pair trading matchups for KEYCORP Dusseldorf
Pair Trading with DAX Index and KEYCORP Dusseldorf
The main advantage of trading using opposite DAX Index and KEYCORP Dusseldorf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, KEYCORP Dusseldorf 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 KEYCORP Dusseldorf will offset losses from the drop in KEYCORP Dusseldorf's long position.| DAX Index vs. Salesforce | DAX Index vs. YATRA ONLINE DL 0001 | DAX Index vs. Ameriprise Financial | DAX Index vs. Mizuho Financial Group |
| KEYCORP Dusseldorf vs. MCEWEN MINING INC | KEYCORP Dusseldorf vs. SBM OFFSHORE | KEYCORP Dusseldorf vs. Evolution Mining Limited | KEYCORP Dusseldorf vs. VIRGIN WINES UK |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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