Correlation Between DAX Index and Television Broadcasts
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By analyzing existing cross correlation between DAX Index and Television Broadcasts Limited, you can compare the effects of market volatilities on DAX Index and Television Broadcasts 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 Television Broadcasts. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Television Broadcasts.
Diversification Opportunities for DAX Index and Television Broadcasts
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Television is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Television Broadcasts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Television Broadcasts 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 Television Broadcasts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Television Broadcasts has no effect on the direction of DAX Index i.e., DAX Index and Television Broadcasts go up and down completely randomly.
Pair Corralation between DAX Index and Television Broadcasts
Assuming the 90 days trading horizon DAX Index is expected to generate 1.98 times less return on investment than Television Broadcasts. But when comparing it to its historical volatility, DAX Index is 8.53 times less risky than Television Broadcasts. It trades about 0.08 of its potential returns per unit of risk. Television Broadcasts Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Television Broadcasts Limited on October 11, 2024 and sell it today you would lose (10.00) from holding Television Broadcasts Limited or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Television Broadcasts Limited
Performance |
| Timeline |
DAX Index and Television Broadcasts Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Television Broadcasts Limited
Pair trading matchups for Television Broadcasts
Pair Trading with DAX Index and Television Broadcasts
The main advantage of trading using opposite DAX Index and Television Broadcasts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Television Broadcasts 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 Television Broadcasts will offset losses from the drop in Television Broadcasts' long position.| DAX Index vs. CHINA SOUTHN AIR H | DAX Index vs. Corsair Gaming | DAX Index vs. APPLIED MATERIALS | DAX Index vs. Air New Zealand |
| Television Broadcasts vs. Renesas Electronics | Television Broadcasts vs. STORE ELECTRONIC | Television Broadcasts vs. TT Electronics PLC | Television Broadcasts vs. Richardson Electronics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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