Correlation Between DAX Index and Liechtensteinische
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By analyzing existing cross correlation between DAX Index and Liechtensteinische Landesbank Aktiengesellschaft, you can compare the effects of market volatilities on DAX Index and Liechtensteinische 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 Liechtensteinische. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Liechtensteinische.
Diversification Opportunities for DAX Index and Liechtensteinische
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Liechtensteinische is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Liechtensteinische Landesbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liechtensteinische 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 Liechtensteinische. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liechtensteinische has no effect on the direction of DAX Index i.e., DAX Index and Liechtensteinische go up and down completely randomly.
Pair Corralation between DAX Index and Liechtensteinische
Assuming the 90 days trading horizon DAX Index is expected to generate 0.42 times more return on investment than Liechtensteinische. However, DAX Index is 2.37 times less risky than Liechtensteinische. It trades about 0.5 of its potential returns per unit of risk. Liechtensteinische Landesbank Aktiengesellschaft is currently generating about 0.01 per unit of risk. If you would invest 1,903,364 in DAX Index on September 13, 2024 and sell it today you would earn a total of 139,263 from holding DAX Index or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Liechtensteinische Landesbank
Performance |
| Timeline |
DAX Index and Liechtensteinische Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Liechtensteinische Landesbank Aktiengesellschaft
Pair trading matchups for Liechtensteinische
Pair Trading with DAX Index and Liechtensteinische
The main advantage of trading using opposite DAX Index and Liechtensteinische positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Liechtensteinische 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 Liechtensteinische will offset losses from the drop in Liechtensteinische's long position.| DAX Index vs. CARSALESCOM | DAX Index vs. Sumitomo Mitsui Construction | DAX Index vs. H FARM SPA | DAX Index vs. Nufarm Limited |
| Liechtensteinische vs. STMicroelectronics NV | Liechtensteinische vs. AOI Electronics Co | Liechtensteinische vs. Nucletron Electronic Aktiengesellschaft | Liechtensteinische vs. ELECTRONIC ARTS |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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