Correlation Between DAX Index and SUNCOKE ENERGY
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By analyzing existing cross correlation between DAX Index and SUNCOKE ENERGY, you can compare the effects of market volatilities on DAX Index and SUNCOKE ENERGY 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 SUNCOKE ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SUNCOKE ENERGY.
Diversification Opportunities for DAX Index and SUNCOKE ENERGY
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and SUNCOKE is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SUNCOKE ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNCOKE ENERGY 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 SUNCOKE ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNCOKE ENERGY has no effect on the direction of DAX Index i.e., DAX Index and SUNCOKE ENERGY go up and down completely randomly.
Pair Corralation between DAX Index and SUNCOKE ENERGY
Assuming the 90 days trading horizon DAX Index is expected to generate 6.95 times less return on investment than SUNCOKE ENERGY. But when comparing it to its historical volatility, DAX Index is 3.29 times less risky than SUNCOKE ENERGY. It trades about 0.21 of its potential returns per unit of risk. SUNCOKE ENERGY is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 886.00 in SUNCOKE ENERGY on September 5, 2024 and sell it today you would earn a total of 314.00 from holding SUNCOKE ENERGY or generate 35.44% 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. SUNCOKE ENERGY
Performance |
| Timeline |
DAX Index and SUNCOKE ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SUNCOKE ENERGY
Pair trading matchups for SUNCOKE ENERGY
Pair Trading with DAX Index and SUNCOKE ENERGY
The main advantage of trading using opposite DAX Index and SUNCOKE ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SUNCOKE ENERGY 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 SUNCOKE ENERGY will offset losses from the drop in SUNCOKE ENERGY's long position.| DAX Index vs. Hochschild Mining plc | DAX Index vs. Ming Le Sports | DAX Index vs. PLAYSTUDIOS A DL 0001 | DAX Index vs. USWE SPORTS AB |
| SUNCOKE ENERGY vs. TOTAL GABON | SUNCOKE ENERGY vs. Walgreens Boots Alliance | SUNCOKE ENERGY vs. Peak Resources Limited |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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