Correlation Between DAX Index and STOMO MITSUI
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By analyzing existing cross correlation between DAX Index and STOMO MITSUI FINL, you can compare the effects of market volatilities on DAX Index and STOMO MITSUI 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 STOMO MITSUI. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and STOMO MITSUI.
Diversification Opportunities for DAX Index and STOMO MITSUI
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and STOMO is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and STOMO MITSUI FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STOMO MITSUI FINL 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 STOMO MITSUI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STOMO MITSUI FINL has no effect on the direction of DAX Index i.e., DAX Index and STOMO MITSUI go up and down completely randomly.
Pair Corralation between DAX Index and STOMO MITSUI
Assuming the 90 days trading horizon DAX Index is expected to generate 0.31 times more return on investment than STOMO MITSUI. However, DAX Index is 3.19 times less risky than STOMO MITSUI. It trades about 0.41 of its potential returns per unit of risk. STOMO MITSUI FINL is currently generating about 0.09 per unit of risk. If you would invest 1,918,919 in DAX Index on September 19, 2024 and sell it today you would earn a total of 105,718 from holding DAX Index or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. STOMO MITSUI FINL
Performance |
| Timeline |
DAX Index and STOMO MITSUI Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
STOMO MITSUI FINL
Pair trading matchups for STOMO MITSUI
Pair Trading with DAX Index and STOMO MITSUI
The main advantage of trading using opposite DAX Index and STOMO MITSUI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, STOMO MITSUI 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 STOMO MITSUI will offset losses from the drop in STOMO MITSUI's long position.| DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
| STOMO MITSUI vs. Apple Inc | STOMO MITSUI vs. Apple Inc | STOMO MITSUI vs. Apple Inc | STOMO MITSUI vs. Apple Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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