Correlation Between DAX Index and Strategic Education
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By analyzing existing cross correlation between DAX Index and Strategic Education, you can compare the effects of market volatilities on DAX Index and Strategic Education 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 Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Strategic Education.
Diversification Opportunities for DAX Index and Strategic Education
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Strategic is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education 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 Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of DAX Index i.e., DAX Index and Strategic Education go up and down completely randomly.
Pair Corralation between DAX Index and Strategic Education
Assuming the 90 days trading horizon DAX Index is expected to generate 6.37 times less return on investment than Strategic Education. But when comparing it to its historical volatility, DAX Index is 3.8 times less risky than Strategic Education. It trades about 0.14 of its potential returns per unit of risk. Strategic Education is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 7,900 in Strategic Education on September 1, 2024 and sell it today you would earn a total of 1,500 from holding Strategic Education or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Strategic Education
Performance |
| Timeline |
DAX Index and Strategic Education Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Strategic Education
Pair trading matchups for Strategic Education
Pair Trading with DAX Index and Strategic Education
The main advantage of trading using opposite DAX Index and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Strategic Education 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 Strategic Education will offset losses from the drop in Strategic Education's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| Strategic Education vs. MIRAMAR HOTEL INV | Strategic Education vs. Sunstone Hotel Investors | Strategic Education vs. SEKISUI CHEMICAL | Strategic Education vs. Sumitomo Chemical |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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