Correlation Between DAX Index and Nexstar Media
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By analyzing existing cross correlation between DAX Index and Nexstar Media Group, you can compare the effects of market volatilities on DAX Index and Nexstar Media 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 Nexstar Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Nexstar Media.
Diversification Opportunities for DAX Index and Nexstar Media
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and Nexstar is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Nexstar Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Media Group 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 Nexstar Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Media Group has no effect on the direction of DAX Index i.e., DAX Index and Nexstar Media go up and down completely randomly.
Pair Corralation between DAX Index and Nexstar Media
Assuming the 90 days trading horizon DAX Index is expected to generate 0.47 times more return on investment than Nexstar Media. However, DAX Index is 2.11 times less risky than Nexstar Media. It trades about -0.03 of its potential returns per unit of risk. Nexstar Media Group is currently generating about -0.11 per unit of risk. If you would invest 2,039,916 in DAX Index on October 12, 2024 and sell it today you would lose (8,206) from holding DAX Index or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Nexstar Media Group
Performance |
| Timeline |
DAX Index and Nexstar Media Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Nexstar Media Group
Pair trading matchups for Nexstar Media
Pair Trading with DAX Index and Nexstar Media
The main advantage of trading using opposite DAX Index and Nexstar Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Nexstar Media 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 Nexstar Media will offset losses from the drop in Nexstar Media's long position.| DAX Index vs. Scottish Mortgage Investment | DAX Index vs. Keck Seng Investments | DAX Index vs. Lendlease Group | DAX Index vs. FIRST SAVINGS FINL |
| Nexstar Media vs. Zijin Mining Group | Nexstar Media vs. Perseus Mining Limited | Nexstar Media vs. FIREWEED METALS P | Nexstar Media vs. BW OFFSHORE LTD |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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