Correlation Between DAX Index and Nissan Chemical
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By analyzing existing cross correlation between DAX Index and Nissan Chemical Corp, you can compare the effects of market volatilities on DAX Index and Nissan Chemical 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 Nissan Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Nissan Chemical.
Diversification Opportunities for DAX Index and Nissan Chemical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Nissan is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Nissan Chemical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nissan Chemical Corp 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 Nissan Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nissan Chemical Corp has no effect on the direction of DAX Index i.e., DAX Index and Nissan Chemical go up and down completely randomly.
Pair Corralation between DAX Index and Nissan Chemical
Assuming the 90 days trading horizon DAX Index is expected to generate 0.43 times more return on investment than Nissan Chemical. However, DAX Index is 2.31 times less risky than Nissan Chemical. It trades about 0.08 of its potential returns per unit of risk. Nissan Chemical Corp is currently generating about -0.02 per unit of risk. If you would invest 1,426,119 in DAX Index on August 28, 2024 and sell it today you would earn a total of 514,401 from holding DAX Index or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Nissan Chemical Corp
Performance |
| Timeline |
DAX Index and Nissan Chemical Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Nissan Chemical Corp
Pair trading matchups for Nissan Chemical
Pair Trading with DAX Index and Nissan Chemical
The main advantage of trading using opposite DAX Index and Nissan Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Nissan Chemical 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 Nissan Chemical will offset losses from the drop in Nissan Chemical's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| Nissan Chemical vs. Gruppo Mutuionline SpA | Nissan Chemical vs. CARSALESCOM | Nissan Chemical vs. Lamar Advertising | Nissan Chemical vs. Fidelity National Information |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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