Correlation Between DAX Index and 3D Systems
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By analyzing existing cross correlation between DAX Index and 3D Systems, you can compare the effects of market volatilities on DAX Index and 3D Systems 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 3D Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and 3D Systems.
Diversification Opportunities for DAX Index and 3D Systems
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and SYV is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and 3D Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3D Systems 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 3D Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3D Systems has no effect on the direction of DAX Index i.e., DAX Index and 3D Systems go up and down completely randomly.
Pair Corralation between DAX Index and 3D Systems
Assuming the 90 days trading horizon DAX Index is expected to under-perform the 3D Systems. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 7.0 times less risky than 3D Systems. The index trades about -0.03 of its potential returns per unit of risk. The 3D Systems is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 295.00 in 3D Systems on August 28, 2024 and sell it today you would earn a total of 9.00 from holding 3D Systems or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. 3D Systems
Performance |
| Timeline |
DAX Index and 3D Systems Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
3D Systems
Pair trading matchups for 3D Systems
Pair Trading with DAX Index and 3D Systems
The main advantage of trading using opposite DAX Index and 3D Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, 3D Systems 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 3D Systems will offset losses from the drop in 3D Systems' long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| 3D Systems vs. Universal Insurance Holdings | 3D Systems vs. United Insurance Holdings | 3D Systems vs. SPARTAN STORES | 3D Systems vs. BRIT AMER TOBACCO |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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