Correlation Between DAX Index and NetApp
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and NetApp Inc, you can compare the effects of market volatilities on DAX Index and NetApp 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 NetApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and NetApp.
Diversification Opportunities for DAX Index and NetApp
Poor diversification
The 3 months correlation between DAX and NetApp is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NetApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetApp Inc 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 NetApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetApp Inc has no effect on the direction of DAX Index i.e., DAX Index and NetApp go up and down completely randomly.
Pair Corralation between DAX Index and NetApp
Assuming the 90 days trading horizon DAX Index is expected to generate 0.39 times more return on investment than NetApp. However, DAX Index is 2.58 times less risky than NetApp. It trades about 0.12 of its potential returns per unit of risk. NetApp Inc is currently generating about 0.02 per unit of risk. If you would invest 1,806,821 in DAX Index on September 13, 2024 and sell it today you would earn a total of 233,095 from holding DAX Index or generate 12.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. NetApp Inc
Performance |
Timeline |
DAX Index and NetApp Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
NetApp Inc
Pair trading matchups for NetApp
Pair Trading with DAX Index and NetApp
The main advantage of trading using opposite DAX Index and NetApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, NetApp 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 NetApp will offset losses from the drop in NetApp's long position.DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
NetApp vs. Pure Storage | NetApp vs. Teradata Corp | NetApp vs. Superior Plus Corp | NetApp vs. Origin Agritech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |