Correlation Between DAX Index and Yue Da
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By analyzing existing cross correlation between DAX Index and Yue Da International, you can compare the effects of market volatilities on DAX Index and Yue Da 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 Yue Da. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Yue Da.
Diversification Opportunities for DAX Index and Yue Da
Excellent diversification
The 3 months correlation between DAX and Yue is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Yue Da International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yue Da International 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 Yue Da. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yue Da International has no effect on the direction of DAX Index i.e., DAX Index and Yue Da go up and down completely randomly.
Pair Corralation between DAX Index and Yue Da
Assuming the 90 days trading horizon DAX Index is expected to generate 0.15 times more return on investment than Yue Da. However, DAX Index is 6.69 times less risky than Yue Da. It trades about -0.03 of its potential returns per unit of risk. Yue Da International is currently generating about -0.01 per unit of risk. If you would invest 1,953,162 in DAX Index on August 28, 2024 and sell it today you would lose (12,642) from holding DAX Index or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Yue Da International
Performance |
| Timeline |
DAX Index and Yue Da Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Yue Da International
Pair trading matchups for Yue Da
Pair Trading with DAX Index and Yue Da
The main advantage of trading using opposite DAX Index and Yue Da positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Yue Da 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 Yue Da will offset losses from the drop in Yue Da's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| Yue Da vs. Corporate Office Properties | Yue Da vs. 24SEVENOFFICE GROUP AB | Yue Da vs. Scientific Games | Yue Da vs. QINGCI GAMES 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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