Correlation Between DAX Index and CIMB SP
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By analyzing existing cross correlation between DAX Index and CIMB SP Ethical, you can compare the effects of market volatilities on DAX Index and CIMB SP 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 CIMB SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CIMB SP.
Diversification Opportunities for DAX Index and CIMB SP
Poor diversification
The 3 months correlation between DAX and CIMB is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CIMB SP Ethical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMB SP Ethical 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 CIMB SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMB SP Ethical has no effect on the direction of DAX Index i.e., DAX Index and CIMB SP go up and down completely randomly.
Pair Corralation between DAX Index and CIMB SP
Assuming the 90 days trading horizon DAX Index is expected to generate 0.68 times more return on investment than CIMB SP. However, DAX Index is 1.46 times less risky than CIMB SP. It trades about 0.2 of its potential returns per unit of risk. CIMB SP Ethical is currently generating about -0.01 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. CIMB SP Ethical
Performance |
| Timeline |
DAX Index and CIMB SP Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CIMB SP Ethical
Pair trading matchups for CIMB SP
Pair Trading with DAX Index and CIMB SP
The main advantage of trading using opposite DAX Index and CIMB SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CIMB SP 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 CIMB SP will offset losses from the drop in CIMB SP'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 |
| CIMB SP vs. iShares Govt Bond | CIMB SP vs. Amundi MSCI Europe | CIMB SP vs. iShares Global AAA AA | CIMB SP vs. iShares Smart City |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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