Correlation Between DAX Index and Option Care
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By analyzing existing cross correlation between DAX Index and Option Care Health, you can compare the effects of market volatilities on DAX Index and Option Care 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 Option Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Option Care.
Diversification Opportunities for DAX Index and Option Care
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Option is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Option Care Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Option Care Health 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 Option Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Option Care Health has no effect on the direction of DAX Index i.e., DAX Index and Option Care go up and down completely randomly.
Pair Corralation between DAX Index and Option Care
Assuming the 90 days trading horizon DAX Index is expected to generate 0.18 times more return on investment than Option Care. However, DAX Index is 5.6 times less risky than Option Care. It trades about -0.05 of its potential returns per unit of risk. Option Care Health is currently generating about -0.2 per unit of risk. If you would invest 1,953,162 in DAX Index on August 27, 2024 and sell it today you would lose (20,903) from holding DAX Index or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Option Care Health
Performance |
| Timeline |
DAX Index and Option Care Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Option Care Health
Pair trading matchups for Option Care
Pair Trading with DAX Index and Option Care
The main advantage of trading using opposite DAX Index and Option Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Option Care 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 Option Care will offset losses from the drop in Option Care's long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| Option Care vs. HYGEIA HC HLDGS | Option Care vs. Superior Plus Corp | Option Care vs. Origin Agritech | Option Care vs. Identiv |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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