Correlation Between DAX Index and Lerøy Seafood
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By analyzing existing cross correlation between DAX Index and Lery Seafood Group, you can compare the effects of market volatilities on DAX Index and Lerøy Seafood 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 Lerøy Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Lerøy Seafood.
Diversification Opportunities for DAX Index and Lerøy Seafood
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Lerøy is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood 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 Lerøy Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of DAX Index i.e., DAX Index and Lerøy Seafood go up and down completely randomly.
Pair Corralation between DAX Index and Lerøy Seafood
Assuming the 90 days trading horizon DAX Index is expected to generate 1.3 times less return on investment than Lerøy Seafood. But when comparing it to its historical volatility, DAX Index is 2.15 times less risky than Lerøy Seafood. It trades about 0.2 of its potential returns per unit of risk. Lery Seafood Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 418.00 in Lery Seafood Group on September 4, 2024 and sell it today you would earn a total of 20.00 from holding Lery Seafood Group or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DAX Index vs. Lery Seafood Group
Performance |
| Timeline |
DAX Index and Lerøy Seafood Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Lery Seafood Group
Pair trading matchups for Lerøy Seafood
Pair Trading with DAX Index and Lerøy Seafood
The main advantage of trading using opposite DAX Index and Lerøy Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Lerøy Seafood 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 Lerøy Seafood will offset losses from the drop in Lerøy Seafood's long position.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| Lerøy Seafood vs. Nestl SA | Lerøy Seafood vs. Kraft Heinz Co | Lerøy Seafood vs. General Mills | Lerøy Seafood vs. Kellogg Company |
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.
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