Correlation Between DAX Index and PATTIES FOODS
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By analyzing existing cross correlation between DAX Index and PATTIES FOODS , you can compare the effects of market volatilities on DAX Index and PATTIES FOODS 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 PATTIES FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PATTIES FOODS.
Diversification Opportunities for DAX Index and PATTIES FOODS
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and PATTIES is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PATTIES FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PATTIES FOODS 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 PATTIES FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PATTIES FOODS has no effect on the direction of DAX Index i.e., DAX Index and PATTIES FOODS go up and down completely randomly.
Pair Corralation between DAX Index and PATTIES FOODS
Assuming the 90 days trading horizon DAX Index is expected to generate 0.15 times more return on investment than PATTIES FOODS. However, DAX Index is 6.66 times less risky than PATTIES FOODS. It trades about 0.08 of its potential returns per unit of risk. PATTIES FOODS is currently generating about 0.0 per unit of risk. If you would invest 1,550,919 in DAX Index on October 24, 2024 and sell it today you would earn a total of 553,281 from holding DAX Index or generate 35.67% 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. PATTIES FOODS
Performance |
| Timeline |
DAX Index and PATTIES FOODS Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
PATTIES FOODS
Pair trading matchups for PATTIES FOODS
Pair Trading with DAX Index and PATTIES FOODS
The main advantage of trading using opposite DAX Index and PATTIES FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PATTIES FOODS 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 PATTIES FOODS will offset losses from the drop in PATTIES FOODS's long position.| DAX Index vs. United Natural Foods | DAX Index vs. Salesforce | DAX Index vs. Maple Leaf Foods | DAX Index vs. MUTUIONLINE |
| PATTIES FOODS vs. Zoetis Inc | PATTIES FOODS vs. Takeda Pharmaceutical | PATTIES FOODS vs. Eisai Co | PATTIES FOODS vs. Shionogi Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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