Correlation Between DAX Index and New Work
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By analyzing existing cross correlation between DAX Index and New Work SE, you can compare the effects of market volatilities on DAX Index and New Work 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 New Work. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and New Work.
Diversification Opportunities for DAX Index and New Work
Very weak diversification
The 3 months correlation between DAX and New is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and New Work SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Work SE 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 New Work. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Work SE has no effect on the direction of DAX Index i.e., DAX Index and New Work go up and down completely randomly.
Pair Corralation between DAX Index and New Work
Assuming the 90 days trading horizon DAX Index is expected to generate 0.28 times more return on investment than New Work. However, DAX Index is 3.62 times less risky than New Work. It trades about 0.08 of its potential returns per unit of risk. New Work SE is currently generating about -0.04 per unit of risk. If you would invest 1,595,273 in DAX Index on September 19, 2024 and sell it today you would earn a total of 429,364 from holding DAX Index or generate 26.91% 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. New Work SE
Performance |
| Timeline |
DAX Index and New Work Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
New Work SE
Pair trading matchups for New Work
Pair Trading with DAX Index and New Work
The main advantage of trading using opposite DAX Index and New Work positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, New Work 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 New Work will offset losses from the drop in New Work's long position.| DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
| New Work vs. Zijin Mining Group | New Work vs. China BlueChemical | New Work vs. SHIN ETSU CHEMICAL | New Work vs. KINGBOARD CHEMICAL |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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