Correlation Between DAX Index and SEALED AIR
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By analyzing existing cross correlation between DAX Index and SEALED AIR , you can compare the effects of market volatilities on DAX Index and SEALED AIR 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 SEALED AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SEALED AIR.
Diversification Opportunities for DAX Index and SEALED AIR
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and SEALED is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SEALED AIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALED AIR 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 SEALED AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALED AIR has no effect on the direction of DAX Index i.e., DAX Index and SEALED AIR go up and down completely randomly.
Pair Corralation between DAX Index and SEALED AIR
Assuming the 90 days trading horizon DAX Index is expected to generate 0.41 times more return on investment than SEALED AIR. However, DAX Index is 2.47 times less risky than SEALED AIR. It trades about 0.08 of its potential returns per unit of risk. SEALED AIR is currently generating about -0.02 per unit of risk. If you would invest 1,426,119 in DAX Index on August 28, 2024 and sell it today you would earn a total of 503,479 from holding DAX Index or generate 35.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. SEALED AIR
Performance |
| Timeline |
DAX Index and SEALED AIR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SEALED AIR
Pair trading matchups for SEALED AIR
Pair Trading with DAX Index and SEALED AIR
The main advantage of trading using opposite DAX Index and SEALED AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SEALED AIR 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 SEALED AIR will offset losses from the drop in SEALED AIR'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 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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