Correlation Between DAX Index and SP Global
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By analyzing existing cross correlation between DAX Index and SP Global, you can compare the effects of market volatilities on DAX Index and SP Global 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 SP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SP Global.
Diversification Opportunities for DAX Index and SP Global
Very weak diversification
The 3 months correlation between DAX and MHL is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Global 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 SP Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Global has no effect on the direction of DAX Index i.e., DAX Index and SP Global go up and down completely randomly.
Pair Corralation between DAX Index and SP Global
Assuming the 90 days trading horizon DAX Index is expected to generate 0.59 times more return on investment than SP Global. However, DAX Index is 1.7 times less risky than SP Global. It trades about 0.08 of its potential returns per unit of risk. SP Global is currently generating about -0.03 per unit of risk. If you would invest 1,948,619 in DAX Index on October 15, 2024 and sell it today you would earn a total of 64,666 from holding DAX Index or generate 3.32% 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. SP Global
Performance |
| Timeline |
DAX Index and SP Global Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SP Global
Pair trading matchups for SP Global
Pair Trading with DAX Index and SP Global
The main advantage of trading using opposite DAX Index and SP Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SP Global 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 SP Global will offset losses from the drop in SP Global's long position.| DAX Index vs. LIFEWAY FOODS | DAX Index vs. Tyson Foods | DAX Index vs. Lifeway Foods | DAX Index vs. MOLSON RS BEVERAGE |
| SP Global vs. QINGCI GAMES INC | SP Global vs. PURETECH HEALTH PLC | SP Global vs. NORTHEAST UTILITIES | SP Global vs. YOOMA WELLNESS INC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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