Correlation Between DAX Index and Karoon Energy
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By analyzing existing cross correlation between DAX Index and Karoon Energy, you can compare the effects of market volatilities on DAX Index and Karoon Energy 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 Karoon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Karoon Energy.
Diversification Opportunities for DAX Index and Karoon Energy
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Karoon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Karoon Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karoon Energy 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 Karoon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karoon Energy has no effect on the direction of DAX Index i.e., DAX Index and Karoon Energy go up and down completely randomly.
Pair Corralation between DAX Index and Karoon Energy
Assuming the 90 days trading horizon DAX Index is expected to generate 0.28 times more return on investment than Karoon Energy. However, DAX Index is 3.58 times less risky than Karoon Energy. It trades about 0.12 of its potential returns per unit of risk. Karoon Energy is currently generating about -0.02 per unit of risk. If you would invest 1,784,285 in DAX Index on December 2, 2024 and sell it today you would earn a total of 470,858 from holding DAX Index or generate 26.39% 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. Karoon Energy
Performance |
| Timeline |
DAX Index and Karoon Energy Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Karoon Energy
Pair trading matchups for Karoon Energy
Pair Trading with DAX Index and Karoon Energy
The main advantage of trading using opposite DAX Index and Karoon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Karoon Energy 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 Karoon Energy will offset losses from the drop in Karoon Energy's long position.| DAX Index vs. Ross Stores | DAX Index vs. National Retail Properties | DAX Index vs. Fast Retailing Co | DAX Index vs. Gol Intelligent Airlines |
| Karoon Energy vs. GRIFFIN MINING LTD | Karoon Energy vs. PT Steel Pipe | Karoon Energy vs. ARDAGH METAL PACDL 0001 | Karoon Energy vs. BlueScope Steel Limited |
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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