Correlation Between DAX Index and Terex
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Terex, you can compare the effects of market volatilities on DAX Index and Terex 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 Terex. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Terex.
Diversification Opportunities for DAX Index and Terex
Poor diversification
The 3 months correlation between DAX and Terex is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Terex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terex 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 Terex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terex has no effect on the direction of DAX Index i.e., DAX Index and Terex go up and down completely randomly.
Pair Corralation between DAX Index and Terex
Assuming the 90 days trading horizon DAX Index is expected to generate 0.29 times more return on investment than Terex. However, DAX Index is 3.51 times less risky than Terex. It trades about 0.05 of its potential returns per unit of risk. Terex is currently generating about -0.01 per unit of risk. If you would invest 1,831,897 in DAX Index on September 3, 2024 and sell it today you would earn a total of 130,748 from holding DAX Index or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Terex
Performance |
| Timeline |
DAX Index and Terex Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Terex
Pair trading matchups for Terex
Pair Trading with DAX Index and Terex
The main advantage of trading using opposite DAX Index and Terex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Terex 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 Terex will offset losses from the drop in Terex's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Terex vs. Federal Agricultural Mortgage | Terex vs. Dairy Farm International | Terex vs. DAIRY FARM INTL | Terex vs. Regions Financial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |