Correlation Between DAX Index and Nomura Holdings
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By analyzing existing cross correlation between DAX Index and Nomura Holdings, you can compare the effects of market volatilities on DAX Index and Nomura 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 Nomura Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Nomura Holdings.
Diversification Opportunities for DAX Index and Nomura Holdings
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Nomura is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Nomura Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura 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 Nomura Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Holdings has no effect on the direction of DAX Index i.e., DAX Index and Nomura Holdings go up and down completely randomly.
Pair Corralation between DAX Index and Nomura Holdings
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Nomura Holdings. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.8 times less risky than Nomura Holdings. The index trades about -0.05 of its potential returns per unit of risk. The Nomura Holdings is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 465.00 in Nomura Holdings on August 29, 2024 and sell it today you would earn a total of 95.00 from holding Nomura Holdings or generate 20.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Nomura Holdings
Performance |
| Timeline |
DAX Index and Nomura Holdings Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Nomura Holdings
Pair trading matchups for Nomura Holdings
Pair Trading with DAX Index and Nomura Holdings
The main advantage of trading using opposite DAX Index and Nomura Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Nomura 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 Nomura Holdings will offset losses from the drop in Nomura Holdings' 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 |
| Nomura Holdings vs. Chiba Bank | Nomura Holdings vs. REVO INSURANCE SPA | Nomura Holdings vs. PT Bank Maybank | Nomura Holdings vs. OAKTRSPECLENDNEW |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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