Correlation Between DAX Index and ASPEN PHARUNADR
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By analyzing existing cross correlation between DAX Index and ASPEN PHARUNADR 1, you can compare the effects of market volatilities on DAX Index and ASPEN PHARUNADR 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 ASPEN PHARUNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ASPEN PHARUNADR.
Diversification Opportunities for DAX Index and ASPEN PHARUNADR
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and ASPEN is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ASPEN PHARUNADR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPEN PHARUNADR 1 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 ASPEN PHARUNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPEN PHARUNADR 1 has no effect on the direction of DAX Index i.e., DAX Index and ASPEN PHARUNADR go up and down completely randomly.
Pair Corralation between DAX Index and ASPEN PHARUNADR
Assuming the 90 days trading horizon DAX Index is expected to generate 0.6 times more return on investment than ASPEN PHARUNADR. However, DAX Index is 1.67 times less risky than ASPEN PHARUNADR. It trades about 0.1 of its potential returns per unit of risk. ASPEN PHARUNADR 1 is currently generating about -0.18 per unit of risk. If you would invest 1,925,497 in DAX Index on September 2, 2024 and sell it today you would earn a total of 37,148 from holding DAX Index or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. ASPEN PHARUNADR 1
Performance |
| Timeline |
DAX Index and ASPEN PHARUNADR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ASPEN PHARUNADR 1
Pair trading matchups for ASPEN PHARUNADR
Pair Trading with DAX Index and ASPEN PHARUNADR
The main advantage of trading using opposite DAX Index and ASPEN PHARUNADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ASPEN PHARUNADR 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 ASPEN PHARUNADR will offset losses from the drop in ASPEN PHARUNADR's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| ASPEN PHARUNADR vs. Broadwind | ASPEN PHARUNADR vs. Universal Insurance Holdings | ASPEN PHARUNADR vs. Selective Insurance Group | ASPEN PHARUNADR vs. Gold Road Resources |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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