Correlation Between DAX Index and SILICON LABORATOR
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By analyzing existing cross correlation between DAX Index and SILICON LABORATOR, you can compare the effects of market volatilities on DAX Index and SILICON LABORATOR 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 SILICON LABORATOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SILICON LABORATOR.
Diversification Opportunities for DAX Index and SILICON LABORATOR
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and SILICON is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SILICON LABORATOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SILICON LABORATOR 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 SILICON LABORATOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SILICON LABORATOR has no effect on the direction of DAX Index i.e., DAX Index and SILICON LABORATOR go up and down completely randomly.
Pair Corralation between DAX Index and SILICON LABORATOR
Assuming the 90 days trading horizon DAX Index is expected to generate 1.03 times less return on investment than SILICON LABORATOR. But when comparing it to its historical volatility, DAX Index is 4.42 times less risky than SILICON LABORATOR. It trades about 0.66 of its potential returns per unit of risk. SILICON LABORATOR is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 12,000 in SILICON LABORATOR on November 4, 2024 and sell it today you would earn a total of 1,000.00 from holding SILICON LABORATOR or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. SILICON LABORATOR
Performance |
| Timeline |
DAX Index and SILICON LABORATOR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SILICON LABORATOR
Pair trading matchups for SILICON LABORATOR
Pair Trading with DAX Index and SILICON LABORATOR
The main advantage of trading using opposite DAX Index and SILICON LABORATOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SILICON LABORATOR 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 SILICON LABORATOR will offset losses from the drop in SILICON LABORATOR's long position.| DAX Index vs. SOEDER SPORTFISKE AB | DAX Index vs. Zoom Video Communications | DAX Index vs. Yuexiu Transport Infrastructure | DAX Index vs. Ribbon Communications |
| SILICON LABORATOR vs. Scottish Mortgage Investment | SILICON LABORATOR vs. VARIOUS EATERIES LS | SILICON LABORATOR vs. Algonquin Power Utilities | SILICON LABORATOR vs. SWISS WATER DECAFFCOFFEE |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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