Correlation Between DAX Index and Meitec
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By analyzing existing cross correlation between DAX Index and Meitec, you can compare the effects of market volatilities on DAX Index and Meitec 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 Meitec. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Meitec.
Diversification Opportunities for DAX Index and Meitec
Pay attention - limited upside
The 3 months correlation between DAX and Meitec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Meitec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meitec 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 Meitec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meitec has no effect on the direction of DAX Index i.e., DAX Index and Meitec go up and down completely randomly.
Pair Corralation between DAX Index and Meitec
If you would invest 1,639,752 in DAX Index on August 27, 2024 and sell it today you would earn a total of 292,507 from holding DAX Index or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
DAX Index vs. Meitec
Performance |
| Timeline |
DAX Index and Meitec Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Meitec
Pair trading matchups for Meitec
Pair Trading with DAX Index and Meitec
The main advantage of trading using opposite DAX Index and Meitec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Meitec 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 Meitec will offset losses from the drop in Meitec's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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