Correlation Between DAX Index and Snam SpA
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By analyzing existing cross correlation between DAX Index and Snam SpA, you can compare the effects of market volatilities on DAX Index and Snam SpA 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 Snam SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Snam SpA.
Diversification Opportunities for DAX Index and Snam SpA
Very good diversification
The 3 months correlation between DAX and Snam is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Snam SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snam SpA 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 Snam SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snam SpA has no effect on the direction of DAX Index i.e., DAX Index and Snam SpA go up and down completely randomly.
Pair Corralation between DAX Index and Snam SpA
Assuming the 90 days trading horizon DAX Index is expected to generate 0.94 times more return on investment than Snam SpA. However, DAX Index is 1.07 times less risky than Snam SpA. It trades about -0.05 of its potential returns per unit of risk. Snam SpA is currently generating about -0.14 per unit of risk. If you would invest 1,953,162 in DAX Index on August 28, 2024 and sell it today you would lose (23,564) from holding DAX Index or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Snam SpA
Performance |
| Timeline |
DAX Index and Snam SpA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Snam SpA
Pair trading matchups for Snam SpA
Pair Trading with DAX Index and Snam SpA
The main advantage of trading using opposite DAX Index and Snam SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Snam SpA 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 Snam SpA will offset losses from the drop in Snam SpA'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 |
| Snam SpA vs. Superior Plus Corp | Snam SpA vs. NMI Holdings | Snam SpA vs. Origin Agritech | Snam SpA vs. SIVERS SEMICONDUCTORS AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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