Correlation Between DAX Index and Banpu PCL
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By analyzing existing cross correlation between DAX Index and Banpu PCL, you can compare the effects of market volatilities on DAX Index and Banpu PCL 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 Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Banpu PCL.
Diversification Opportunities for DAX Index and Banpu PCL
Modest diversification
The 3 months correlation between DAX and Banpu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Banpu PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL 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 Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL has no effect on the direction of DAX Index i.e., DAX Index and Banpu PCL go up and down completely randomly.
Pair Corralation between DAX Index and Banpu PCL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.13 times more return on investment than Banpu PCL. However, DAX Index is 7.67 times less risky than Banpu PCL. It trades about 0.2 of its potential returns per unit of risk. Banpu PCL is currently generating about 0.0 per unit of risk. If you would invest 1,914,785 in DAX Index on September 4, 2024 and sell it today you would earn a total of 78,577 from holding DAX Index or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Banpu PCL
Performance |
| Timeline |
DAX Index and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Banpu PCL
Pair trading matchups for Banpu PCL
Pair Trading with DAX Index and Banpu PCL
The main advantage of trading using opposite DAX Index and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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