Correlation Between DAX Index and Mitsui OSK
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By analyzing existing cross correlation between DAX Index and Mitsui OSK Lines, you can compare the effects of market volatilities on DAX Index and Mitsui OSK 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 Mitsui OSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Mitsui OSK.
Diversification Opportunities for DAX Index and Mitsui OSK
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and Mitsui is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Mitsui OSK Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsui OSK Lines 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 Mitsui OSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsui OSK Lines has no effect on the direction of DAX Index i.e., DAX Index and Mitsui OSK go up and down completely randomly.
Pair Corralation between DAX Index and Mitsui OSK
Assuming the 90 days trading horizon DAX Index is expected to generate 0.45 times more return on investment than Mitsui OSK. However, DAX Index is 2.21 times less risky than Mitsui OSK. It trades about 0.09 of its potential returns per unit of risk. Mitsui OSK Lines is currently generating about 0.03 per unit of risk. If you would invest 1,874,711 in DAX Index on September 3, 2024 and sell it today you would earn a total of 87,934 from holding DAX Index or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Mitsui OSK Lines
Performance |
| Timeline |
DAX Index and Mitsui OSK Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Mitsui OSK Lines
Pair trading matchups for Mitsui OSK
Pair Trading with DAX Index and Mitsui OSK
The main advantage of trading using opposite DAX Index and Mitsui OSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Mitsui OSK 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 Mitsui OSK will offset losses from the drop in Mitsui OSK's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Mitsui OSK vs. NTG Nordic Transport | Mitsui OSK vs. Lion One Metals | Mitsui OSK vs. Texas Roadhouse | Mitsui OSK vs. SERI INDUSTRIAL EO |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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