Correlation Between DAX Index and STRAITS TRADG
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By analyzing existing cross correlation between DAX Index and STRAITS TRADG SD, you can compare the effects of market volatilities on DAX Index and STRAITS TRADG 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 STRAITS TRADG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and STRAITS TRADG.
Diversification Opportunities for DAX Index and STRAITS TRADG
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and STRAITS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and STRAITS TRADG SD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAITS TRADG SD 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 STRAITS TRADG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAITS TRADG SD has no effect on the direction of DAX Index i.e., DAX Index and STRAITS TRADG go up and down completely randomly.
Pair Corralation between DAX Index and STRAITS TRADG
Assuming the 90 days trading horizon DAX Index is expected to under-perform the STRAITS TRADG. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.11 times less risky than STRAITS TRADG. The index trades about -0.03 of its potential returns per unit of risk. The STRAITS TRADG SD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 100.00 in STRAITS TRADG SD on August 28, 2024 and sell it today you would earn a total of 0.00 from holding STRAITS TRADG SD or generate 0.0% 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. STRAITS TRADG SD
Performance |
| Timeline |
DAX Index and STRAITS TRADG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
STRAITS TRADG SD
Pair trading matchups for STRAITS TRADG
Pair Trading with DAX Index and STRAITS TRADG
The main advantage of trading using opposite DAX Index and STRAITS TRADG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, STRAITS TRADG 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 STRAITS TRADG will offset losses from the drop in STRAITS TRADG's long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| STRAITS TRADG vs. Selective Insurance Group | STRAITS TRADG vs. REVO INSURANCE SPA | STRAITS TRADG vs. Ping An Insurance | STRAITS TRADG vs. ARDAGH METAL PACDL 0001 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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