Correlation Between DAX Index and Shutterstock
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By analyzing existing cross correlation between DAX Index and Shutterstock, you can compare the effects of market volatilities on DAX Index and Shutterstock 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 Shutterstock. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Shutterstock.
Diversification Opportunities for DAX Index and Shutterstock
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Shutterstock is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Shutterstock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shutterstock 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 Shutterstock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shutterstock has no effect on the direction of DAX Index i.e., DAX Index and Shutterstock go up and down completely randomly.
Pair Corralation between DAX Index and Shutterstock
Assuming the 90 days trading horizon DAX Index is expected to generate 0.32 times more return on investment than Shutterstock. However, DAX Index is 3.11 times less risky than Shutterstock. It trades about 0.05 of its potential returns per unit of risk. Shutterstock is currently generating about -0.03 per unit of risk. If you would invest 1,857,594 in DAX Index on September 3, 2024 and sell it today you would earn a total of 105,051 from holding DAX Index or generate 5.66% 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. Shutterstock
Performance |
| Timeline |
DAX Index and Shutterstock Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Shutterstock
Pair trading matchups for Shutterstock
Pair Trading with DAX Index and Shutterstock
The main advantage of trading using opposite DAX Index and Shutterstock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Shutterstock 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 Shutterstock will offset losses from the drop in Shutterstock's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Shutterstock vs. KENEDIX OFFICE INV | Shutterstock vs. TITAN MACHINERY | Shutterstock vs. Corporate Office Properties | Shutterstock vs. HYDROFARM HLD GRP |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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