Correlation Between DAX Index and Kering SA
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By analyzing existing cross correlation between DAX Index and Kering SA, you can compare the effects of market volatilities on DAX Index and Kering SA 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 Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Kering SA.
Diversification Opportunities for DAX Index and Kering SA
Good diversification
The 3 months correlation between DAX and Kering is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA 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 Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of DAX Index i.e., DAX Index and Kering SA go up and down completely randomly.
Pair Corralation between DAX Index and Kering SA
Assuming the 90 days trading horizon DAX Index is expected to generate 0.28 times more return on investment than Kering SA. However, DAX Index is 3.63 times less risky than Kering SA. It trades about 0.09 of its potential returns per unit of risk. Kering SA is currently generating about -0.06 per unit of risk. If you would invest 1,874,711 in DAX Index on September 3, 2024 and sell it today you would earn a total of 87,934 from holding DAX Index or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Kering SA
Performance |
| Timeline |
DAX Index and Kering SA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Kering SA
Pair trading matchups for Kering SA
Pair Trading with DAX Index and Kering SA
The main advantage of trading using opposite DAX Index and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Kering SA vs. Goosehead Insurance | Kering SA vs. CSSC Offshore Marine | Kering SA vs. LIFENET INSURANCE CO | Kering SA vs. BW OFFSHORE LTD |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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