Correlation Between DAX Index and TELE2 AB
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By analyzing existing cross correlation between DAX Index and TELE2 AB UNSPADR12, you can compare the effects of market volatilities on DAX Index and TELE2 AB 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 TELE2 AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and TELE2 AB.
Diversification Opportunities for DAX Index and TELE2 AB
Very good diversification
The 3 months correlation between DAX and TELE2 is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and TELE2 AB UNSPADR12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 AB UNSPADR12 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 TELE2 AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 AB UNSPADR12 has no effect on the direction of DAX Index i.e., DAX Index and TELE2 AB go up and down completely randomly.
Pair Corralation between DAX Index and TELE2 AB
Assuming the 90 days trading horizon DAX Index is expected to under-perform the TELE2 AB. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.12 times less risky than TELE2 AB. The index trades about -0.05 of its potential returns per unit of risk. The TELE2 AB UNSPADR12 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 482.00 in TELE2 AB UNSPADR12 on August 28, 2024 and sell it today you would earn a total of 0.00 from holding TELE2 AB UNSPADR12 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. TELE2 AB UNSPADR12
Performance |
| Timeline |
DAX Index and TELE2 AB Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
TELE2 AB UNSPADR12
Pair trading matchups for TELE2 AB
Pair Trading with DAX Index and TELE2 AB
The main advantage of trading using opposite DAX Index and TELE2 AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, TELE2 AB 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 TELE2 AB will offset losses from the drop in TELE2 AB's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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