Correlation Between DAX Index and Alibaba Health
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By analyzing existing cross correlation between DAX Index and Alibaba Health Information, you can compare the effects of market volatilities on DAX Index and Alibaba Health 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 Alibaba Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Alibaba Health.
Diversification Opportunities for DAX Index and Alibaba Health
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Alibaba is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Alibaba Health Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Health Infor 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 Alibaba Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Health Infor has no effect on the direction of DAX Index i.e., DAX Index and Alibaba Health go up and down completely randomly.
Pair Corralation between DAX Index and Alibaba Health
Assuming the 90 days trading horizon DAX Index is expected to generate 0.29 times more return on investment than Alibaba Health. However, DAX Index is 3.43 times less risky than Alibaba Health. It trades about 0.21 of its potential returns per unit of risk. Alibaba Health Information is currently generating about -0.05 per unit of risk. If you would invest 1,914,785 in DAX Index on September 5, 2024 and sell it today you would earn a total of 86,890 from holding DAX Index or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Alibaba Health Information
Performance |
| Timeline |
DAX Index and Alibaba Health Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Alibaba Health Information
Pair trading matchups for Alibaba Health
Pair Trading with DAX Index and Alibaba Health
The main advantage of trading using opposite DAX Index and Alibaba Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Alibaba Health 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 Alibaba Health will offset losses from the drop in Alibaba Health's long position.| DAX Index vs. Hochschild Mining plc | DAX Index vs. Ming Le Sports | DAX Index vs. PLAYSTUDIOS A DL 0001 | DAX Index vs. USWE SPORTS AB |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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