Correlation Between DAX Index and TREECOM
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By analyzing existing cross correlation between DAX Index and TREECOM, you can compare the effects of market volatilities on DAX Index and TREECOM 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 TREECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and TREECOM.
Diversification Opportunities for DAX Index and TREECOM
Very good diversification
The 3 months correlation between DAX and TREECOM is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and TREECOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TREECOM 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 TREECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TREECOM has no effect on the direction of DAX Index i.e., DAX Index and TREECOM go up and down completely randomly.
Pair Corralation between DAX Index and TREECOM
Assuming the 90 days trading horizon DAX Index is expected to generate 0.2 times more return on investment than TREECOM. However, DAX Index is 4.9 times less risky than TREECOM. It trades about 0.26 of its potential returns per unit of risk. TREECOM is currently generating about -0.21 per unit of risk. If you would invest 1,944,860 in DAX Index on September 12, 2024 and sell it today you would earn a total of 95,056 from holding DAX Index or generate 4.89% 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. TREECOM
Performance |
| Timeline |
DAX Index and TREECOM Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
TREECOM
Pair trading matchups for TREECOM
Pair Trading with DAX Index and TREECOM
The main advantage of trading using opposite DAX Index and TREECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, TREECOM 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 TREECOM will offset losses from the drop in TREECOM's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| TREECOM vs. DATAGROUP SE | TREECOM vs. GALENA MINING LTD | TREECOM vs. MINCO SILVER | TREECOM vs. Zijin Mining Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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