Correlation Between DAX Index and Plexus Corp
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By analyzing existing cross correlation between DAX Index and Plexus Corp, you can compare the effects of market volatilities on DAX Index and Plexus Corp 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 Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Plexus Corp.
Diversification Opportunities for DAX Index and Plexus Corp
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Plexus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp 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 Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of DAX Index i.e., DAX Index and Plexus Corp go up and down completely randomly.
Pair Corralation between DAX Index and Plexus Corp
Assuming the 90 days trading horizon DAX Index is expected to generate 7.07 times less return on investment than Plexus Corp. But when comparing it to its historical volatility, DAX Index is 2.96 times less risky than Plexus Corp. It trades about 0.1 of its potential returns per unit of risk. Plexus Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 13,300 in Plexus Corp on September 2, 2024 and sell it today you would earn a total of 1,900 from holding Plexus Corp or generate 14.29% 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. Plexus Corp
Performance |
| Timeline |
DAX Index and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Plexus Corp
Pair trading matchups for Plexus Corp
Pair Trading with DAX Index and Plexus Corp
The main advantage of trading using opposite DAX Index and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Plexus Corp 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 Plexus Corp will offset losses from the drop in Plexus Corp's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Plexus Corp vs. MGIC INVESTMENT | Plexus Corp vs. NXP Semiconductors NV | Plexus Corp vs. EAT WELL INVESTMENT | Plexus Corp vs. Apollo Investment Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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