Correlation Between DAX Index and Varta AG
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Varta AG, you can compare the effects of market volatilities on DAX Index and Varta 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 Varta AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Varta AG.
Diversification Opportunities for DAX Index and Varta AG
Average diversification
The 3 months correlation between DAX and Varta is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Varta AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varta 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 Varta AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varta AG has no effect on the direction of DAX Index i.e., DAX Index and Varta AG go up and down completely randomly.
Pair Corralation between DAX Index and Varta AG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.13 times more return on investment than Varta AG. However, DAX Index is 7.77 times less risky than Varta AG. It trades about 0.5 of its potential returns per unit of risk. Varta AG is currently generating about -0.2 per unit of risk. If you would invest 1,903,364 in DAX Index on September 13, 2024 and sell it today you would earn a total of 136,552 from holding DAX Index or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Varta AG
Performance |
| Timeline |
DAX Index and Varta AG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Varta AG
Pair trading matchups for Varta AG
Pair Trading with DAX Index and Varta AG
The main advantage of trading using opposite DAX Index and Varta AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Varta 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 Varta AG will offset losses from the drop in Varta AG's long position.| DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
| Varta AG vs. SLR Investment Corp | Varta AG vs. Ping An Insurance | Varta AG vs. ZURICH INSURANCE GROUP | Varta AG vs. REINET INVESTMENTS SCA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |