Correlation Between DAX Index and SPORTING
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By analyzing existing cross correlation between DAX Index and SPORTING, you can compare the effects of market volatilities on DAX Index and SPORTING 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 SPORTING. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SPORTING.
Diversification Opportunities for DAX Index and SPORTING
Very poor diversification
The 3 months correlation between DAX and SPORTING is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SPORTING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPORTING 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 SPORTING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPORTING has no effect on the direction of DAX Index i.e., DAX Index and SPORTING go up and down completely randomly.
Pair Corralation between DAX Index and SPORTING
Assuming the 90 days trading horizon DAX Index is expected to generate 1.81 times less return on investment than SPORTING. But when comparing it to its historical volatility, DAX Index is 3.5 times less risky than SPORTING. It trades about 0.05 of its potential returns per unit of risk. SPORTING is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 102.00 in SPORTING on August 28, 2024 and sell it today you would earn a total of 4.00 from holding SPORTING or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.22% |
| Values | Daily Returns |
DAX Index vs. SPORTING
Performance |
| Timeline |
DAX Index and SPORTING Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SPORTING
Pair trading matchups for SPORTING
Pair Trading with DAX Index and SPORTING
The main advantage of trading using opposite DAX Index and SPORTING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SPORTING 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 SPORTING will offset losses from the drop in SPORTING's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| SPORTING vs. AEGEAN AIRLINES | SPORTING vs. TFS FINANCIAL | SPORTING vs. Mizuho Financial Group | SPORTING vs. SINGAPORE AIRLINES |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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