Correlation Between DAX Index and Caltagirone SpA
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By analyzing existing cross correlation between DAX Index and Caltagirone SpA, you can compare the effects of market volatilities on DAX Index and Caltagirone SpA 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 Caltagirone SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Caltagirone SpA.
Diversification Opportunities for DAX Index and Caltagirone SpA
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Caltagirone is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Caltagirone SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caltagirone SpA 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 Caltagirone SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caltagirone SpA has no effect on the direction of DAX Index i.e., DAX Index and Caltagirone SpA go up and down completely randomly.
Pair Corralation between DAX Index and Caltagirone SpA
Assuming the 90 days trading horizon DAX Index is expected to generate 2.61 times less return on investment than Caltagirone SpA. But when comparing it to its historical volatility, DAX Index is 2.92 times less risky than Caltagirone SpA. It trades about 0.08 of its potential returns per unit of risk. Caltagirone SpA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Caltagirone SpA on August 31, 2024 and sell it today you would earn a total of 224.00 from holding Caltagirone SpA or generate 60.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Caltagirone SpA
Performance |
| Timeline |
DAX Index and Caltagirone SpA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Caltagirone SpA
Pair trading matchups for Caltagirone SpA
Pair Trading with DAX Index and Caltagirone SpA
The main advantage of trading using opposite DAX Index and Caltagirone SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Caltagirone SpA 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 Caltagirone SpA will offset losses from the drop in Caltagirone SpA's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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