Correlation Between DAX Index and Nisshinbo Holdings
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By analyzing existing cross correlation between DAX Index and Nisshinbo Holdings, you can compare the effects of market volatilities on DAX Index and Nisshinbo Holdings 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 Nisshinbo Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Nisshinbo Holdings.
Diversification Opportunities for DAX Index and Nisshinbo Holdings
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Nisshinbo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Nisshinbo Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisshinbo Holdings 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 Nisshinbo Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisshinbo Holdings has no effect on the direction of DAX Index i.e., DAX Index and Nisshinbo Holdings go up and down completely randomly.
Pair Corralation between DAX Index and Nisshinbo Holdings
Assuming the 90 days trading horizon DAX Index is expected to generate 0.54 times more return on investment than Nisshinbo Holdings. However, DAX Index is 1.86 times less risky than Nisshinbo Holdings. It trades about 0.08 of its potential returns per unit of risk. Nisshinbo Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,512,608 in DAX Index on September 19, 2024 and sell it today you would earn a total of 512,029 from holding DAX Index or generate 33.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
DAX Index vs. Nisshinbo Holdings
Performance |
| Timeline |
DAX Index and Nisshinbo Holdings Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Nisshinbo Holdings
Pair trading matchups for Nisshinbo Holdings
Pair Trading with DAX Index and Nisshinbo Holdings
The main advantage of trading using opposite DAX Index and Nisshinbo Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Nisshinbo Holdings 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 Nisshinbo Holdings will offset losses from the drop in Nisshinbo Holdings' long position.| DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
| Nisshinbo Holdings vs. Nordic Semiconductor ASA | Nisshinbo Holdings vs. KRISPY KREME DL 01 | Nisshinbo Holdings vs. Cogent Communications Holdings | Nisshinbo Holdings vs. Chesapeake Utilities |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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