Correlation Between DAX Index and Neste Oyj
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Neste Oyj, you can compare the effects of market volatilities on DAX Index and Neste Oyj 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 Neste Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Neste Oyj.
Diversification Opportunities for DAX Index and Neste Oyj
Very good diversification
The 3 months correlation between DAX and Neste is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Neste Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neste Oyj 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 Neste Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neste Oyj has no effect on the direction of DAX Index i.e., DAX Index and Neste Oyj go up and down completely randomly.
Pair Corralation between DAX Index and Neste Oyj
Assuming the 90 days trading horizon DAX Index is expected to generate 0.29 times more return on investment than Neste Oyj. However, DAX Index is 3.43 times less risky than Neste Oyj. It trades about -0.03 of its potential returns per unit of risk. Neste Oyj is currently generating about -0.02 per unit of risk. If you would invest 1,946,359 in DAX Index on August 26, 2024 and sell it today you would lose (14,100) from holding DAX Index or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Neste Oyj
Performance |
| Timeline |
DAX Index and Neste Oyj Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Neste Oyj
Pair trading matchups for Neste Oyj
Pair Trading with DAX Index and Neste Oyj
The main advantage of trading using opposite DAX Index and Neste Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Neste Oyj 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 Neste Oyj will offset losses from the drop in Neste Oyj's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| Neste Oyj vs. Charter Communications | Neste Oyj vs. ANTA SPORTS PRODUCT | Neste Oyj vs. Playtech plc | Neste Oyj vs. PLAY2CHILL SA ZY |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |