Correlation Between LG Display and DAX Index
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By analyzing existing cross correlation between LG Display Co and DAX Index, you can compare the effects of market volatilities on LG Display and DAX 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 LG Display with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Display and DAX Index.
Diversification Opportunities for LG Display and DAX Index
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LGA and DAX is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding LG Display Co and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and LG Display 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 LG Display Co are associated (or correlated) with DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of LG Display i.e., LG Display and DAX Index go up and down completely randomly.
Pair Corralation between LG Display and DAX Index
Assuming the 90 days horizon LG Display Co is expected to under-perform the DAX Index. In addition to that, LG Display is 2.55 times more volatile than DAX Index. It trades about -0.15 of its total potential returns per unit of risk. DAX Index is currently generating about 0.45 per unit of volatility. If you would invest 1,926,370 in DAX Index on September 15, 2024 and sell it today you would earn a total of 114,222 from holding DAX Index or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LG Display Co vs. DAX Index
Performance |
| Timeline |
LG Display and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
LG Display Co
Pair trading matchups for LG Display
DAX Index
Pair trading matchups for DAX Index
Pair Trading with LG Display and DAX Index
The main advantage of trading using opposite LG Display and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Display position performs unexpectedly, DAX 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 DAX Index will offset losses from the drop in DAX Index's long position.| LG Display vs. Samsung Electronics Co | LG Display vs. Sony Group | LG Display vs. Superior Plus Corp | LG Display vs. SIVERS SEMICONDUCTORS AB |
| DAX Index vs. Flutter Entertainment PLC | DAX Index vs. LG Display Co | DAX Index vs. TOWNSQUARE MEDIA INC | DAX Index vs. Prosiebensat 1 Media |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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