Correlation Between Ming Le and DAX Index
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By analyzing existing cross correlation between Ming Le Sports and DAX Index, you can compare the effects of market volatilities on Ming Le 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 Ming Le with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Le and DAX Index.
Diversification Opportunities for Ming Le and DAX Index
Weak diversification
The 3 months correlation between Ming and DAX is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ming Le Sports and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Ming Le 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 Ming Le Sports 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 Ming Le i.e., Ming Le and DAX Index go up and down completely randomly.
Pair Corralation between Ming Le and DAX Index
Assuming the 90 days trading horizon Ming Le Sports is expected to generate 12.42 times more return on investment than DAX Index. However, Ming Le is 12.42 times more volatile than DAX Index. It trades about 0.13 of its potential returns per unit of risk. DAX Index is currently generating about 0.5 per unit of risk. If you would invest 100.00 in Ming Le Sports on September 13, 2024 and sell it today you would earn a total of 19.00 from holding Ming Le Sports or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Le Sports vs. DAX Index
Performance |
| Timeline |
Ming Le and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Ming Le Sports
Pair trading matchups for Ming Le
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Ming Le and DAX Index
The main advantage of trading using opposite Ming Le and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Le 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.The idea behind Ming Le Sports and DAX Index pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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