Correlation Between DAX Index and Stryker
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By analyzing existing cross correlation between DAX Index and Stryker, you can compare the effects of market volatilities on DAX Index and Stryker 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 Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Stryker.
Diversification Opportunities for DAX Index and Stryker
Modest diversification
The 3 months correlation between DAX and Stryker is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of DAX Index i.e., DAX Index and Stryker go up and down completely randomly.
Pair Corralation between DAX Index and Stryker
Assuming the 90 days trading horizon DAX Index is expected to generate 3.93 times less return on investment than Stryker. But when comparing it to its historical volatility, DAX Index is 1.51 times less risky than Stryker. It trades about 0.04 of its potential returns per unit of risk. Stryker is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 31,205 in Stryker on August 29, 2024 and sell it today you would earn a total of 5,915 from holding Stryker or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Stryker
Performance |
| Timeline |
DAX Index and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Stryker
Pair trading matchups for Stryker
Pair Trading with DAX Index and Stryker
The main advantage of trading using opposite DAX Index and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker'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 |
| Stryker vs. Superior Plus Corp | Stryker vs. NMI Holdings | Stryker vs. Origin Agritech | Stryker 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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