Correlation Between DAX Index and VIETNAM ENTERPRISE
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By analyzing existing cross correlation between DAX Index and VIETNAM ENTERPRISE INV, you can compare the effects of market volatilities on DAX Index and VIETNAM ENTERPRISE 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 VIETNAM ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and VIETNAM ENTERPRISE.
Diversification Opportunities for DAX Index and VIETNAM ENTERPRISE
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and VIETNAM is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and VIETNAM ENTERPRISE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIETNAM ENTERPRISE INV 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 VIETNAM ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIETNAM ENTERPRISE INV has no effect on the direction of DAX Index i.e., DAX Index and VIETNAM ENTERPRISE go up and down completely randomly.
Pair Corralation between DAX Index and VIETNAM ENTERPRISE
Assuming the 90 days trading horizon DAX Index is expected to generate 0.76 times more return on investment than VIETNAM ENTERPRISE. However, DAX Index is 1.31 times less risky than VIETNAM ENTERPRISE. It trades about 0.03 of its potential returns per unit of risk. VIETNAM ENTERPRISE INV is currently generating about -0.02 per unit of risk. If you would invest 1,877,471 in DAX Index on August 25, 2024 and sell it today you would earn a total of 54,788 from holding DAX Index or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. VIETNAM ENTERPRISE INV
Performance |
| Timeline |
DAX Index and VIETNAM ENTERPRISE Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
VIETNAM ENTERPRISE INV
Pair trading matchups for VIETNAM ENTERPRISE
Pair Trading with DAX Index and VIETNAM ENTERPRISE
The main advantage of trading using opposite DAX Index and VIETNAM ENTERPRISE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, VIETNAM ENTERPRISE 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 VIETNAM ENTERPRISE will offset losses from the drop in VIETNAM ENTERPRISE'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 |
| VIETNAM ENTERPRISE vs. Unity Software | VIETNAM ENTERPRISE vs. Performance Food Group | VIETNAM ENTERPRISE vs. VITEC SOFTWARE GROUP | VIETNAM ENTERPRISE vs. AUSTEVOLL SEAFOOD |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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