Correlation Between DAX Index and PNE AG
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By analyzing existing cross correlation between DAX Index and PNE AG, you can compare the effects of market volatilities on DAX Index and PNE AG 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 PNE AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PNE AG.
Diversification Opportunities for DAX Index and PNE AG
Average diversification
The 3 months correlation between DAX and PNE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PNE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNE AG 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 PNE AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNE AG has no effect on the direction of DAX Index i.e., DAX Index and PNE AG go up and down completely randomly.
Pair Corralation between DAX Index and PNE AG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.92 times more return on investment than PNE AG. However, DAX Index is 1.09 times less risky than PNE AG. It trades about 0.2 of its potential returns per unit of risk. PNE AG is currently generating about -0.24 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. PNE AG
Performance |
| Timeline |
DAX Index and PNE AG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
PNE AG
Pair trading matchups for PNE AG
Pair Trading with DAX Index and PNE AG
The main advantage of trading using opposite DAX Index and PNE AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PNE AG 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 PNE AG will offset losses from the drop in PNE AG'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 |
| PNE AG vs. CN LGYPWRGRUNSPADR10 | PNE AG vs. Lyxor 1 | PNE AG vs. Xtrackers ShortDAX | PNE AG vs. Xtrackers LevDAX |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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