Correlation Between DAX Index and PC Connection
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By analyzing existing cross correlation between DAX Index and PC Connection, you can compare the effects of market volatilities on DAX Index and PC Connection 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 PC Connection. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PC Connection.
Diversification Opportunities for DAX Index and PC Connection
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and PCC is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PC Connection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PC Connection 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 PC Connection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PC Connection has no effect on the direction of DAX Index i.e., DAX Index and PC Connection go up and down completely randomly.
Pair Corralation between DAX Index and PC Connection
Assuming the 90 days trading horizon DAX Index is expected to generate 2.94 times less return on investment than PC Connection. But when comparing it to its historical volatility, DAX Index is 2.97 times less risky than PC Connection. It trades about 0.2 of its potential returns per unit of risk. PC Connection is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5,941 in PC Connection on September 4, 2024 and sell it today you would earn a total of 709.00 from holding PC Connection or generate 11.93% 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. PC Connection
Performance |
| Timeline |
DAX Index and PC Connection Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
PC Connection
Pair trading matchups for PC Connection
Pair Trading with DAX Index and PC Connection
The main advantage of trading using opposite DAX Index and PC Connection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PC Connection 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 PC Connection will offset losses from the drop in PC Connection'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 |
| PC Connection vs. LG Display Co | PC Connection vs. Universal Display | PC Connection vs. COLUMBIA SPORTSWEAR | PC Connection vs. MAROC TELECOM |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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