Correlation Between DAX Index and Woodside Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Woodside Energy Group, you can compare the effects of market volatilities on DAX Index and Woodside Energy 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 Woodside Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Woodside Energy.
Diversification Opportunities for DAX Index and Woodside Energy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and Woodside is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Woodside Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woodside Energy Group 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 Woodside Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woodside Energy Group has no effect on the direction of DAX Index i.e., DAX Index and Woodside Energy go up and down completely randomly.
Pair Corralation between DAX Index and Woodside Energy
Assuming the 90 days trading horizon DAX Index is expected to generate 0.45 times more return on investment than Woodside Energy. However, DAX Index is 2.23 times less risky than Woodside Energy. It trades about 0.04 of its potential returns per unit of risk. Woodside Energy Group is currently generating about -0.02 per unit of risk. If you would invest 1,860,816 in DAX Index on August 30, 2024 and sell it today you would earn a total of 81,757 from holding DAX Index or generate 4.39% 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. Woodside Energy Group
Performance |
| Timeline |
DAX Index and Woodside Energy Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Woodside Energy Group
Pair trading matchups for Woodside Energy
Pair Trading with DAX Index and Woodside Energy
The main advantage of trading using opposite DAX Index and Woodside Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Woodside Energy 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 Woodside Energy will offset losses from the drop in Woodside Energy's long position.| DAX Index vs. NEWELL RUBBERMAID | DAX Index vs. APPLIED MATERIALS | DAX Index vs. Compagnie Plastic Omnium | DAX Index vs. Vulcan Materials |
| Woodside Energy vs. CosmoSteel Holdings Limited | Woodside Energy vs. Major Drilling Group | Woodside Energy vs. LEGACY IRON ORE | Woodside Energy vs. Avanos Medical |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |