Correlation Between DAX Index and Teradyne
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Teradyne, you can compare the effects of market volatilities on DAX Index and Teradyne 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 Teradyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Teradyne.
Diversification Opportunities for DAX Index and Teradyne
Good diversification
The 3 months correlation between DAX and Teradyne is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Teradyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradyne 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 Teradyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradyne has no effect on the direction of DAX Index i.e., DAX Index and Teradyne go up and down completely randomly.
Pair Corralation between DAX Index and Teradyne
Assuming the 90 days trading horizon DAX Index is expected to generate 0.39 times more return on investment than Teradyne. However, DAX Index is 2.59 times less risky than Teradyne. It trades about -0.03 of its potential returns per unit of risk. Teradyne is currently generating about -0.1 per unit of risk. If you would invest 1,944,300 in DAX Index on August 25, 2024 and sell it today you would lose (12,041) from holding DAX Index or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Teradyne
Performance |
| Timeline |
DAX Index and Teradyne Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Teradyne
Pair trading matchups for Teradyne
Pair Trading with DAX Index and Teradyne
The main advantage of trading using opposite DAX Index and Teradyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Teradyne 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 Teradyne will offset losses from the drop in Teradyne's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| Teradyne vs. ASML HOLDING NY | Teradyne vs. Applied Materials | Teradyne vs. Lam Research | Teradyne vs. Superior Plus Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |