Correlation Between DAX Index and Takara Holdings
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By analyzing existing cross correlation between DAX Index and Takara Holdings, you can compare the effects of market volatilities on DAX Index and Takara Holdings 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 Takara Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Takara Holdings.
Diversification Opportunities for DAX Index and Takara Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Takara is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Takara Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takara Holdings 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 Takara Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takara Holdings has no effect on the direction of DAX Index i.e., DAX Index and Takara Holdings go up and down completely randomly.
Pair Corralation between DAX Index and Takara Holdings
Assuming the 90 days trading horizon DAX Index is expected to generate 0.43 times more return on investment than Takara Holdings. However, DAX Index is 2.3 times less risky than Takara Holdings. It trades about 0.09 of its potential returns per unit of risk. Takara Holdings is currently generating about 0.02 per unit of risk. If you would invest 1,620,422 in DAX Index on September 12, 2024 and sell it today you would earn a total of 412,494 from holding DAX Index or generate 25.46% 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. Takara Holdings
Performance |
| Timeline |
DAX Index and Takara Holdings Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Takara Holdings
Pair trading matchups for Takara Holdings
Pair Trading with DAX Index and Takara Holdings
The main advantage of trading using opposite DAX Index and Takara Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Takara Holdings 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 Takara Holdings will offset losses from the drop in Takara Holdings' long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Takara Holdings vs. VIVA WINE GROUP | Takara Holdings vs. GUARDANT HEALTH CL | Takara Holdings vs. VIRGIN WINES UK | Takara Holdings vs. Cardinal Health |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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