Correlation Between DAX Index and SIKA AG
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By analyzing existing cross correlation between DAX Index and SIKA AG UNSPADR, you can compare the effects of market volatilities on DAX Index and SIKA AG 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 SIKA AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SIKA AG.
Diversification Opportunities for DAX Index and SIKA AG
Very good diversification
The 3 months correlation between DAX and SIKA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SIKA AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIKA AG UNSPADR 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 SIKA AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIKA AG UNSPADR has no effect on the direction of DAX Index i.e., DAX Index and SIKA AG go up and down completely randomly.
Pair Corralation between DAX Index and SIKA AG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.64 times more return on investment than SIKA AG. However, DAX Index is 1.57 times less risky than SIKA AG. It trades about 0.1 of its potential returns per unit of risk. SIKA AG UNSPADR is currently generating about -0.17 per unit of risk. If you would invest 1,925,497 in DAX Index on September 2, 2024 and sell it today you would earn a total of 37,148 from holding DAX Index or generate 1.93% 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. SIKA AG UNSPADR
Performance |
| Timeline |
DAX Index and SIKA AG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SIKA AG UNSPADR
Pair trading matchups for SIKA AG
Pair Trading with DAX Index and SIKA AG
The main advantage of trading using opposite DAX Index and SIKA AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SIKA AG 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 SIKA AG will offset losses from the drop in SIKA AG's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| SIKA AG vs. GREENX METALS LTD | SIKA AG vs. AM EAGLE OUTFITTERS | SIKA AG vs. Richardson Electronics | SIKA AG vs. Arrow Electronics |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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