Correlation Between DAX Index and Sun Art
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By analyzing existing cross correlation between DAX Index and Sun Art Retail, you can compare the effects of market volatilities on DAX Index and Sun Art 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 Sun Art. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Sun Art.
Diversification Opportunities for DAX Index and Sun Art
Very weak diversification
The 3 months correlation between DAX and Sun is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Sun Art Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Art Retail 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 Sun Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Art Retail has no effect on the direction of DAX Index i.e., DAX Index and Sun Art go up and down completely randomly.
Pair Corralation between DAX Index and Sun Art
Assuming the 90 days trading horizon DAX Index is expected to generate 0.31 times more return on investment than Sun Art. However, DAX Index is 3.19 times less risky than Sun Art. It trades about 0.24 of its potential returns per unit of risk. Sun Art Retail is currently generating about 0.01 per unit of risk. If you would invest 2,143,058 in DAX Index on November 29, 2024 and sell it today you would earn a total of 112,031 from holding DAX Index or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Sun Art Retail
Performance |
| Timeline |
DAX Index and Sun Art Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Sun Art Retail
Pair trading matchups for Sun Art
Pair Trading with DAX Index and Sun Art
The main advantage of trading using opposite DAX Index and Sun Art positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Sun Art 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 Sun Art will offset losses from the drop in Sun Art's long position.| DAX Index vs. BOSTON BEER A | DAX Index vs. JSC Halyk bank | DAX Index vs. Fevertree Drinks PLC | DAX Index vs. Tsingtao Brewery |
| Sun Art vs. PARKEN SPORT ENT | Sun Art vs. Fukuyama Transporting Co | Sun Art vs. Ming Le Sports | Sun Art vs. DEVRY EDUCATION GRP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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