Correlation Between DAX Index and SEED
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By analyzing existing cross correlation between DAX Index and SEED LIMITED, you can compare the effects of market volatilities on DAX Index and SEED 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 SEED. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SEED.
Diversification Opportunities for DAX Index and SEED
Excellent diversification
The 3 months correlation between DAX and SEED is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SEED LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEED LIMITED 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 SEED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEED LIMITED has no effect on the direction of DAX Index i.e., DAX Index and SEED go up and down completely randomly.
Pair Corralation between DAX Index and SEED
Assuming the 90 days trading horizon DAX Index is expected to generate 0.2 times more return on investment than SEED. However, DAX Index is 5.04 times less risky than SEED. It trades about -0.03 of its potential returns per unit of risk. SEED LIMITED is currently generating about -0.39 per unit of risk. If you would invest 2,039,916 in DAX Index on October 12, 2024 and sell it today you would lose (8,206) from holding DAX Index or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
DAX Index vs. SEED LIMITED
Performance |
| Timeline |
DAX Index and SEED Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SEED LIMITED
Pair trading matchups for SEED
Pair Trading with DAX Index and SEED
The main advantage of trading using opposite DAX Index and SEED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SEED 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 SEED will offset losses from the drop in SEED's long position.| DAX Index vs. Scottish Mortgage Investment | DAX Index vs. Keck Seng Investments | DAX Index vs. Lendlease Group | DAX Index vs. FIRST SAVINGS FINL |
| SEED vs. STAR AFRICA PORATION | SEED vs. CAFCA LIMITED | SEED vs. FIRST MUTUAL PROPERTIES | SEED vs. AFRICAN DISTILLERS 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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