Correlation Between DAX Index and SECURITAS
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By analyzing existing cross correlation between DAX Index and SECURITAS B , you can compare the effects of market volatilities on DAX Index and SECURITAS 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 SECURITAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SECURITAS.
Diversification Opportunities for DAX Index and SECURITAS
Very poor diversification
The 3 months correlation between DAX and SECURITAS is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SECURITAS B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURITAS B 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 SECURITAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURITAS B has no effect on the direction of DAX Index i.e., DAX Index and SECURITAS go up and down completely randomly.
Pair Corralation between DAX Index and SECURITAS
Assuming the 90 days trading horizon DAX Index is expected to generate 4.21 times less return on investment than SECURITAS. But when comparing it to its historical volatility, DAX Index is 3.5 times less risky than SECURITAS. It trades about 0.1 of its potential returns per unit of risk. SECURITAS B is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 338.00 in SECURITAS B on November 27, 2024 and sell it today you would earn a total of 1,063 from holding SECURITAS B or generate 314.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. SECURITAS B
Performance |
| Timeline |
DAX Index and SECURITAS Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SECURITAS B
Pair trading matchups for SECURITAS
Pair Trading with DAX Index and SECURITAS
The main advantage of trading using opposite DAX Index and SECURITAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SECURITAS 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 SECURITAS will offset losses from the drop in SECURITAS's long position.| DAX Index vs. CAIRN HOMES EO | DAX Index vs. Hisense Home Appliances | DAX Index vs. STRAYER EDUCATION | DAX Index vs. CHINA EDUCATION GROUP |
| SECURITAS vs. HK Electric Investments | SECURITAS vs. Tower One Wireless | SECURITAS vs. Verizon Communications | SECURITAS vs. SLR Investment Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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