Correlation Between DAX Index and Takkt AG
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By analyzing existing cross correlation between DAX Index and Takkt AG, you can compare the effects of market volatilities on DAX Index and Takkt AG 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Takkt AG.
Diversification Opportunities for DAX Index and Takkt AG
Good diversification
The 3 months correlation between DAX and Takkt is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of DAX Index i.e., DAX Index and Takkt AG go up and down completely randomly.
Pair Corralation between DAX Index and Takkt AG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.64 times more return on investment than Takkt AG. However, DAX Index is 1.57 times less risky than Takkt AG. It trades about 0.05 of its potential returns per unit of risk. Takkt AG is currently generating about -0.35 per unit of risk. If you would invest 1,925,734 in DAX Index on August 31, 2024 and sell it today you would earn a total of 16,839 from holding DAX Index or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Takkt AG
Performance |
| Timeline |
DAX Index and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Takkt AG
Pair trading matchups for Takkt AG
Pair Trading with DAX Index and Takkt AG
The main advantage of trading using opposite DAX Index and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| Takkt AG vs. SCANSOURCE | Takkt AG vs. DeVry Education Group | Takkt AG vs. Ultra Clean Holdings | Takkt AG vs. STRAYER EDUCATION |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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