Correlation Between DAX Index and NEXANS
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By analyzing existing cross correlation between DAX Index and NEXANS, you can compare the effects of market volatilities on DAX Index and NEXANS 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 NEXANS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and NEXANS.
Diversification Opportunities for DAX Index and NEXANS
Very good diversification
The 3 months correlation between DAX and NEXANS is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NEXANS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXANS 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 NEXANS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXANS has no effect on the direction of DAX Index i.e., DAX Index and NEXANS go up and down completely randomly.
Pair Corralation between DAX Index and NEXANS
Assuming the 90 days trading horizon DAX Index is expected to generate 0.35 times more return on investment than NEXANS. However, DAX Index is 2.88 times less risky than NEXANS. It trades about 0.41 of its potential returns per unit of risk. NEXANS is currently generating about -0.15 per unit of risk. If you would invest 1,918,919 in DAX Index on September 19, 2024 and sell it today you would earn a total of 105,718 from holding DAX Index or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. NEXANS
Performance |
| Timeline |
DAX Index and NEXANS Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Pair Trading with DAX Index and NEXANS
The main advantage of trading using opposite DAX Index and NEXANS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, NEXANS 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 NEXANS will offset losses from the drop in NEXANS'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 |
| NEXANS vs. Fidelity National Information | NEXANS vs. Science Applications International | NEXANS vs. National Storage Affiliates | NEXANS vs. PKSHA TECHNOLOGY INC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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