Correlation Between DAX Index and Glaston Oyj
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By analyzing existing cross correlation between DAX Index and Glaston Oyj Abp, you can compare the effects of market volatilities on DAX Index and Glaston Oyj 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 Glaston Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Glaston Oyj.
Diversification Opportunities for DAX Index and Glaston Oyj
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Glaston is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Glaston Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaston Oyj Abp 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 Glaston Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaston Oyj Abp has no effect on the direction of DAX Index i.e., DAX Index and Glaston Oyj go up and down completely randomly.
Pair Corralation between DAX Index and Glaston Oyj
Assuming the 90 days trading horizon DAX Index is expected to generate 0.34 times more return on investment than Glaston Oyj. However, DAX Index is 2.96 times less risky than Glaston Oyj. It trades about 0.08 of its potential returns per unit of risk. Glaston Oyj Abp is currently generating about 0.0 per unit of risk. If you would invest 1,444,761 in DAX Index on August 24, 2024 and sell it today you would earn a total of 487,498 from holding DAX Index or generate 33.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. Glaston Oyj Abp
Performance |
| Timeline |
DAX Index and Glaston Oyj Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Glaston Oyj Abp
Pair trading matchups for Glaston Oyj
Pair Trading with DAX Index and Glaston Oyj
The main advantage of trading using opposite DAX Index and Glaston Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Glaston Oyj 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 Glaston Oyj will offset losses from the drop in Glaston Oyj'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 |
| Glaston Oyj vs. Vulcan Materials | Glaston Oyj vs. MSAD INSURANCE | Glaston Oyj vs. Goosehead Insurance | Glaston Oyj vs. Insurance Australia Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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