Correlation Between DAX Index and Ricoh Company
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By analyzing existing cross correlation between DAX Index and Ricoh Company, you can compare the effects of market volatilities on DAX Index and Ricoh Company 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 Ricoh Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Ricoh Company.
Diversification Opportunities for DAX Index and Ricoh Company
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Ricoh is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Ricoh Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricoh Company 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 Ricoh Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricoh Company has no effect on the direction of DAX Index i.e., DAX Index and Ricoh Company go up and down completely randomly.
Pair Corralation between DAX Index and Ricoh Company
Assuming the 90 days trading horizon DAX Index is expected to generate 0.38 times more return on investment than Ricoh Company. However, DAX Index is 2.62 times less risky than Ricoh Company. It trades about 0.18 of its potential returns per unit of risk. Ricoh Company is currently generating about -0.09 per unit of risk. If you would invest 2,172,720 in DAX Index on December 1, 2024 and sell it today you would earn a total of 82,423 from holding DAX Index or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Ricoh Company
Performance |
| Timeline |
DAX Index and Ricoh Company Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Ricoh Company
Pair trading matchups for Ricoh Company
Pair Trading with DAX Index and Ricoh Company
The main advantage of trading using opposite DAX Index and Ricoh Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Ricoh Company 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 Ricoh Company will offset losses from the drop in Ricoh Company's long position.| DAX Index vs. Phibro Animal Health | DAX Index vs. Cardinal Health | DAX Index vs. Siemens Healthineers AG | DAX Index vs. CARDINAL HEALTH |
| Ricoh Company vs. Canon Inc | Ricoh Company vs. Brother Industries | Ricoh Company vs. Canon Marketing Japan | Ricoh Company vs. Herman Miller |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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