Correlation Between DAX Index and NEXANS ADR
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By analyzing existing cross correlation between DAX Index and NEXANS ADR EO, you can compare the effects of market volatilities on DAX Index and NEXANS ADR 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 ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and NEXANS ADR.
Diversification Opportunities for DAX Index and NEXANS ADR
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and NEXANS is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and NEXANS ADR EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXANS ADR EO 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 ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXANS ADR EO has no effect on the direction of DAX Index i.e., DAX Index and NEXANS ADR go up and down completely randomly.
Pair Corralation between DAX Index and NEXANS ADR
Assuming the 90 days trading horizon DAX Index is expected to generate 0.31 times more return on investment than NEXANS ADR. However, DAX Index is 3.21 times less risky than NEXANS ADR. It trades about 0.0 of its potential returns per unit of risk. NEXANS ADR EO is currently generating about -0.14 per unit of risk. If you would invest 2,034,596 in DAX Index on October 10, 2024 and sell it today you would lose (539.00) from holding DAX Index or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
DAX Index vs. NEXANS ADR EO
Performance |
| Timeline |
DAX Index and NEXANS ADR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
NEXANS ADR EO
Pair trading matchups for NEXANS ADR
Pair Trading with DAX Index and NEXANS ADR
The main advantage of trading using opposite DAX Index and NEXANS ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, NEXANS ADR 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 ADR will offset losses from the drop in NEXANS ADR's long position.| DAX Index vs. Meli Hotels International | DAX Index vs. DALATA HOTEL | DAX Index vs. BRAEMAR HOTELS RES | DAX Index vs. Hyatt Hotels |
| NEXANS ADR vs. Austevoll Seafood ASA | NEXANS ADR vs. PT Wintermar Offshore | NEXANS ADR vs. Astral Foods Limited | NEXANS ADR vs. YATRA ONLINE DL 0001 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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