Correlation Between DAX Index and Wacker Neuson
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By analyzing existing cross correlation between DAX Index and Wacker Neuson SE, you can compare the effects of market volatilities on DAX Index and Wacker Neuson 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 Wacker Neuson. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Wacker Neuson.
Diversification Opportunities for DAX Index and Wacker Neuson
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and Wacker is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Wacker Neuson SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wacker Neuson SE 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 Wacker Neuson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wacker Neuson SE has no effect on the direction of DAX Index i.e., DAX Index and Wacker Neuson go up and down completely randomly.
Pair Corralation between DAX Index and Wacker Neuson
Assuming the 90 days trading horizon DAX Index is expected to generate 0.46 times more return on investment than Wacker Neuson. However, DAX Index is 2.18 times less risky than Wacker Neuson. It trades about 0.09 of its potential returns per unit of risk. Wacker Neuson SE is currently generating about 0.0 per unit of risk. If you would invest 1,398,623 in DAX Index on September 5, 2024 and sell it today you would earn a total of 603,052 from holding DAX Index or generate 43.12% 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. Wacker Neuson SE
Performance |
| Timeline |
DAX Index and Wacker Neuson Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Wacker Neuson SE
Pair trading matchups for Wacker Neuson
Pair Trading with DAX Index and Wacker Neuson
The main advantage of trading using opposite DAX Index and Wacker Neuson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Wacker Neuson 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 Wacker Neuson will offset losses from the drop in Wacker Neuson'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 |
| Wacker Neuson vs. PUBLIC STORAGE PRFO | Wacker Neuson vs. UMC Electronics Co | Wacker Neuson vs. DATAGROUP SE | Wacker Neuson vs. LPKF Laser Electronics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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