Correlation Between DAX Index and Packaging
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By analyzing existing cross correlation between DAX Index and Packaging of, you can compare the effects of market volatilities on DAX Index and Packaging 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 Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Packaging.
Diversification Opportunities for DAX Index and Packaging
Very weak diversification
The 3 months correlation between DAX and Packaging is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Packaging of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Packaging 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 Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Packaging has no effect on the direction of DAX Index i.e., DAX Index and Packaging go up and down completely randomly.
Pair Corralation between DAX Index and Packaging
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Packaging. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.59 times less risky than Packaging. The index trades about -0.05 of its potential returns per unit of risk. The Packaging of is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 20,850 in Packaging of on August 29, 2024 and sell it today you would earn a total of 2,630 from holding Packaging of or generate 12.61% 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. Packaging of
Performance |
| Timeline |
DAX Index and Packaging Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Packaging of
Pair trading matchups for Packaging
Pair Trading with DAX Index and Packaging
The main advantage of trading using opposite DAX Index and Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Packaging 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 Packaging will offset losses from the drop in Packaging's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| Packaging vs. Host Hotels Resorts | Packaging vs. MIRAMAR HOTEL INV | Packaging vs. COVIVIO HOTELS INH | Packaging vs. InterContinental Hotels Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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