Correlation Between DAX Index and Sanoma Oyj
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Sanoma Oyj, you can compare the effects of market volatilities on DAX Index and Sanoma Oyj 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 Sanoma Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Sanoma Oyj.
Diversification Opportunities for DAX Index and Sanoma Oyj
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Sanoma is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Sanoma Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanoma Oyj 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 Sanoma Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanoma Oyj has no effect on the direction of DAX Index i.e., DAX Index and Sanoma Oyj go up and down completely randomly.
Pair Corralation between DAX Index and Sanoma Oyj
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Sanoma Oyj. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 2.05 times less risky than Sanoma Oyj. The index trades about -0.03 of its potential returns per unit of risk. The Sanoma Oyj is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 678.00 in Sanoma Oyj on August 27, 2024 and sell it today you would earn a total of 21.00 from holding Sanoma Oyj or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Sanoma Oyj
Performance |
| Timeline |
DAX Index and Sanoma Oyj Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Sanoma Oyj
Pair trading matchups for Sanoma Oyj
Pair Trading with DAX Index and Sanoma Oyj
The main advantage of trading using opposite DAX Index and Sanoma Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Sanoma Oyj 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 Sanoma Oyj will offset losses from the drop in Sanoma Oyj's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| Sanoma Oyj vs. HYATT HOTELS A | Sanoma Oyj vs. National Health Investors | Sanoma Oyj vs. COVIVIO HOTELS INH | Sanoma Oyj vs. Summit Hotel Properties |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |