Correlation Between DAX Index and PUMA SE
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By analyzing existing cross correlation between DAX Index and PUMA SE UNSPADR, you can compare the effects of market volatilities on DAX Index and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PUMA SE.
Diversification Opportunities for DAX Index and PUMA SE
Modest diversification
The 3 months correlation between DAX and PUMA is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PUMA SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE UNSPADR 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE UNSPADR has no effect on the direction of DAX Index i.e., DAX Index and PUMA SE go up and down completely randomly.
Pair Corralation between DAX Index and PUMA SE
Assuming the 90 days trading horizon DAX Index is expected to generate 0.22 times more return on investment than PUMA SE. However, DAX Index is 4.61 times less risky than PUMA SE. It trades about 0.08 of its potential returns per unit of risk. PUMA SE UNSPADR is currently generating about 0.01 per unit of risk. If you would invest 1,594,984 in DAX Index on September 1, 2024 and sell it today you would earn a total of 367,661 from holding DAX Index or generate 23.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
DAX Index vs. PUMA SE UNSPADR
Performance |
| Timeline |
DAX Index and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
PUMA SE UNSPADR
Pair trading matchups for PUMA SE
Pair Trading with DAX Index and PUMA SE
The main advantage of trading using opposite DAX Index and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| PUMA SE vs. Wizz Air Holdings | PUMA SE vs. MCEWEN MINING INC | PUMA SE vs. LION ONE METALS | PUMA SE vs. WIZZ AIR HLDGUNSPADR4 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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