Correlation Between DAX Index and Teva Pharmaceutical
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By analyzing existing cross correlation between DAX Index and Teva Pharmaceutical Industries, you can compare the effects of market volatilities on DAX Index and Teva Pharmaceutical 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 Teva Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Teva Pharmaceutical.
Diversification Opportunities for DAX Index and Teva Pharmaceutical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Teva is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Teva Pharmaceutical Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teva Pharmaceutical 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 Teva Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teva Pharmaceutical has no effect on the direction of DAX Index i.e., DAX Index and Teva Pharmaceutical go up and down completely randomly.
Pair Corralation between DAX Index and Teva Pharmaceutical
Assuming the 90 days trading horizon DAX Index is expected to generate 3.44 times less return on investment than Teva Pharmaceutical. But when comparing it to its historical volatility, DAX Index is 4.07 times less risky than Teva Pharmaceutical. It trades about 0.12 of its potential returns per unit of risk. Teva Pharmaceutical Industries is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 952.00 in Teva Pharmaceutical Industries on September 26, 2024 and sell it today you would earn a total of 1,168 from holding Teva Pharmaceutical Industries or generate 122.69% 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. Teva Pharmaceutical Industries
Performance |
| Timeline |
DAX Index and Teva Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Teva Pharmaceutical Industries
Pair trading matchups for Teva Pharmaceutical
Pair Trading with DAX Index and Teva Pharmaceutical
The main advantage of trading using opposite DAX Index and Teva Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Teva Pharmaceutical 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 Teva Pharmaceutical will offset losses from the drop in Teva Pharmaceutical's long position.| DAX Index vs. CODERE ONLINE LUX | DAX Index vs. CARSALESCOM | DAX Index vs. PACIFIC ONLINE | DAX Index vs. Focus Home Interactive |
| Teva Pharmaceutical vs. Zoetis Inc | Teva Pharmaceutical vs. Takeda Pharmaceutical | Teva Pharmaceutical vs. Eisai Co | Teva Pharmaceutical vs. Shionogi Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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