Correlation Between DAX Index and SOLSTAD OFFSHORE
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By analyzing existing cross correlation between DAX Index and SOLSTAD OFFSHORE NK, you can compare the effects of market volatilities on DAX Index and SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SOLSTAD OFFSHORE.
Diversification Opportunities for DAX Index and SOLSTAD OFFSHORE
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and SOLSTAD is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SOLSTAD OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOLSTAD OFFSHORE has no effect on the direction of DAX Index i.e., DAX Index and SOLSTAD OFFSHORE go up and down completely randomly.
Pair Corralation between DAX Index and SOLSTAD OFFSHORE
Assuming the 90 days trading horizon DAX Index is expected to under-perform the SOLSTAD OFFSHORE. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 5.34 times less risky than SOLSTAD OFFSHORE. The index trades about 0.0 of its potential returns per unit of risk. The SOLSTAD OFFSHORE NK is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 272.00 in SOLSTAD OFFSHORE NK on August 29, 2024 and sell it today you would earn a total of 73.00 from holding SOLSTAD OFFSHORE NK or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
DAX Index vs. SOLSTAD OFFSHORE NK
Performance |
| Timeline |
DAX Index and SOLSTAD OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
SOLSTAD OFFSHORE NK
Pair trading matchups for SOLSTAD OFFSHORE
Pair Trading with DAX Index and SOLSTAD OFFSHORE
The main advantage of trading using opposite DAX Index and SOLSTAD OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE will offset losses from the drop in SOLSTAD OFFSHORE's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| SOLSTAD OFFSHORE vs. ZIM Integrated Shipping | SOLSTAD OFFSHORE vs. Superior Plus Corp | SOLSTAD OFFSHORE vs. NMI Holdings | SOLSTAD OFFSHORE 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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