Correlation Between DAX Index and NESTE OYJ
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By analyzing existing cross correlation between DAX Index and NESTE OYJ UNSPADR, 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 -0.4. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR 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 UNSPADR 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 0.32 times more return on investment than NESTE OYJ. However, DAX Index is 3.1 times less risky than NESTE OYJ. It trades about 0.41 of its potential returns per unit of risk. NESTE OYJ UNSPADR is currently generating about -0.21 per unit of risk. If you would invest 1,918,919 in DAX Index on September 18, 2024 and sell it today you would earn a total of 105,718 from holding DAX Index or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. NESTE OYJ UNSPADR
Performance |
| Timeline |
DAX Index and NESTE OYJ Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
NESTE OYJ UNSPADR
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. GEAR4MUSIC LS 10 | DAX Index vs. MOVIE GAMES SA | DAX Index vs. Zoom Video Communications | DAX Index vs. LANDSEA GREEN MANAGEMENT |
| NESTE OYJ vs. Casio Computer CoLtd | NESTE OYJ vs. Micron Technology | NESTE OYJ vs. Microchip Technology Incorporated | NESTE OYJ vs. PT Ace Hardware |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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