Correlation Between JAPAN TOBACCO and SDAX Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between JAPAN TOBACCO UNSPADR12 and SDAX Index, you can compare the effects of market volatilities on JAPAN TOBACCO and SDAX Index 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 JAPAN TOBACCO with a short position of SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN TOBACCO and SDAX Index.
Diversification Opportunities for JAPAN TOBACCO and SDAX Index
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JAPAN and SDAX is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN TOBACCO UNSPADR12 and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index and JAPAN TOBACCO 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 JAPAN TOBACCO UNSPADR12 are associated (or correlated) with SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of JAPAN TOBACCO i.e., JAPAN TOBACCO and SDAX Index go up and down completely randomly.
Pair Corralation between JAPAN TOBACCO and SDAX Index
Assuming the 90 days trading horizon JAPAN TOBACCO is expected to generate 3.51 times less return on investment than SDAX Index. In addition to that, JAPAN TOBACCO is 2.26 times more volatile than SDAX Index. It trades about 0.05 of its total potential returns per unit of risk. SDAX Index is currently generating about 0.42 per unit of volatility. If you would invest 1,324,848 in SDAX Index on September 13, 2024 and sell it today you would earn a total of 93,555 from holding SDAX Index or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
JAPAN TOBACCO UNSPADR12 vs. SDAX Index
Performance |
| Timeline |
JAPAN TOBACCO and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
JAPAN TOBACCO UNSPADR12
Pair trading matchups for JAPAN TOBACCO
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with JAPAN TOBACCO and SDAX Index
The main advantage of trading using opposite JAPAN TOBACCO and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN TOBACCO position performs unexpectedly, SDAX Index 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 SDAX Index will offset losses from the drop in SDAX Index's long position.| JAPAN TOBACCO vs. MCEWEN MINING INC | JAPAN TOBACCO vs. GALENA MINING LTD | JAPAN TOBACCO vs. GRIFFIN MINING LTD | JAPAN TOBACCO vs. Calibre Mining Corp |
| SDAX Index vs. CDN IMPERIAL BANK | SDAX Index vs. Evolution Mining Limited | SDAX Index vs. VIRG NATL BANKSH | SDAX Index vs. PT Bank Maybank |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |