Correlation Between DAX Index and INFORMATION SVC
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By analyzing existing cross correlation between DAX Index and INFORMATION SVC GRP, you can compare the effects of market volatilities on DAX Index and INFORMATION SVC 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 INFORMATION SVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and INFORMATION SVC.
Diversification Opportunities for DAX Index and INFORMATION SVC
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and INFORMATION is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and INFORMATION SVC GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFORMATION SVC GRP 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 INFORMATION SVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFORMATION SVC GRP has no effect on the direction of DAX Index i.e., DAX Index and INFORMATION SVC go up and down completely randomly.
Pair Corralation between DAX Index and INFORMATION SVC
Assuming the 90 days trading horizon DAX Index is expected to generate 0.36 times more return on investment than INFORMATION SVC. However, DAX Index is 2.78 times less risky than INFORMATION SVC. It trades about 0.08 of its potential returns per unit of risk. INFORMATION SVC GRP is currently generating about -0.02 per unit of risk. If you would invest 1,426,119 in DAX Index on August 28, 2024 and sell it today you would earn a total of 503,479 from holding DAX Index or generate 35.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. INFORMATION SVC GRP
Performance |
| Timeline |
DAX Index and INFORMATION SVC Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
INFORMATION SVC GRP
Pair trading matchups for INFORMATION SVC
Pair Trading with DAX Index and INFORMATION SVC
The main advantage of trading using opposite DAX Index and INFORMATION SVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, INFORMATION SVC 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 INFORMATION SVC will offset losses from the drop in INFORMATION SVC'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 |
| INFORMATION SVC vs. ELMOS SEMICONDUCTOR | INFORMATION SVC vs. Treasury Wine Estates | INFORMATION SVC vs. Nordic Semiconductor ASA | INFORMATION SVC vs. Algonquin Power Utilities |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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