Correlation Between DAX Index and Schibsted ASA
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Schibsted ASA B, you can compare the effects of market volatilities on DAX Index and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Schibsted ASA.
Diversification Opportunities for DAX Index and Schibsted ASA
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Schibsted is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of DAX Index i.e., DAX Index and Schibsted ASA go up and down completely randomly.
Pair Corralation between DAX Index and Schibsted ASA
Assuming the 90 days trading horizon DAX Index is expected to generate 0.3 times more return on investment than Schibsted ASA. However, DAX Index is 3.35 times less risky than Schibsted ASA. It trades about 0.23 of its potential returns per unit of risk. Schibsted ASA B is currently generating about -0.1 per unit of risk. If you would invest 1,926,175 in DAX Index on September 28, 2024 and sell it today you would earn a total of 58,702 from holding DAX Index or generate 3.05% 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. Schibsted ASA B
Performance |
| Timeline |
DAX Index and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Schibsted ASA B
Pair trading matchups for Schibsted ASA
Pair Trading with DAX Index and Schibsted ASA
The main advantage of trading using opposite DAX Index and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| DAX Index vs. Ultra Clean Holdings | DAX Index vs. Consolidated Communications Holdings | DAX Index vs. VITEC SOFTWARE GROUP | DAX Index vs. Check Point Software |
| Schibsted ASA vs. RELX PLC | Schibsted ASA vs. Relx PLC ADR | Schibsted ASA vs. Wolters Kluwer NV | Schibsted ASA vs. WOLTERS KLUWER ADR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |