Correlation Between DAX Index and Qingling Motors
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By analyzing existing cross correlation between DAX Index and Qingling Motors Co, you can compare the effects of market volatilities on DAX Index and Qingling Motors 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 Qingling Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Qingling Motors.
Diversification Opportunities for DAX Index and Qingling Motors
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Qingling is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Qingling Motors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingling Motors 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 Qingling Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingling Motors has no effect on the direction of DAX Index i.e., DAX Index and Qingling Motors go up and down completely randomly.
Pair Corralation between DAX Index and Qingling Motors
Assuming the 90 days trading horizon DAX Index is expected to generate 2.31 times less return on investment than Qingling Motors. But when comparing it to its historical volatility, DAX Index is 4.33 times less risky than Qingling Motors. It trades about 0.45 of its potential returns per unit of risk. Qingling Motors Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5.60 in Qingling Motors Co on September 15, 2024 and sell it today you would earn a total of 0.76 from holding Qingling Motors Co or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Qingling Motors Co
Performance |
| Timeline |
DAX Index and Qingling Motors Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Qingling Motors Co
Pair trading matchups for Qingling Motors
Pair Trading with DAX Index and Qingling Motors
The main advantage of trading using opposite DAX Index and Qingling Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Qingling Motors 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 Qingling Motors will offset losses from the drop in Qingling Motors' long position.| DAX Index vs. Flutter Entertainment PLC | DAX Index vs. LG Display Co | DAX Index vs. TOWNSQUARE MEDIA INC | DAX Index vs. Prosiebensat 1 Media |
| Qingling Motors vs. Heidelberg Materials AG | Qingling Motors vs. Host Hotels Resorts | Qingling Motors vs. Compagnie Plastic Omnium | Qingling Motors vs. INTERCONT HOTELS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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