Correlation Between DAX Index and First American
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and First American Financial, you can compare the effects of market volatilities on DAX Index and First American 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 First American. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and First American.
Diversification Opportunities for DAX Index and First American
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and First is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and First American Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First American Financial 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 First American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First American Financial has no effect on the direction of DAX Index i.e., DAX Index and First American go up and down completely randomly.
Pair Corralation between DAX Index and First American
Assuming the 90 days trading horizon DAX Index is expected to generate 0.58 times more return on investment than First American. However, DAX Index is 1.73 times less risky than First American. It trades about 0.18 of its potential returns per unit of risk. First American Financial is currently generating about 0.08 per unit of risk. If you would invest 1,863,311 in DAX Index on September 14, 2024 and sell it today you would earn a total of 179,316 from holding DAX Index or generate 9.62% 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. First American Financial
Performance |
| Timeline |
DAX Index and First American Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
First American Financial
Pair trading matchups for First American
Pair Trading with DAX Index and First American
The main advantage of trading using opposite DAX Index and First American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, First American 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 First American will offset losses from the drop in First American's long position.| DAX Index vs. CARSALESCOM | DAX Index vs. Sumitomo Mitsui Construction | DAX Index vs. H FARM SPA | DAX Index vs. Nufarm Limited |
| First American vs. FARO Technologies | First American vs. Uber Technologies | First American vs. Jacquet Metal Service | First American vs. ADRIATIC METALS LS 013355 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |