Correlation Between NTG Nordic and DAX Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between NTG Nordic Transport and DAX Index, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and DAX Index.
Diversification Opportunities for NTG Nordic and DAX Index
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NTG and DAX is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and DAX Index go up and down completely randomly.
Pair Corralation between NTG Nordic and DAX Index
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the DAX Index. In addition to that, NTG Nordic is 2.7 times more volatile than DAX Index. It trades about -0.25 of its total potential returns per unit of risk. DAX Index is currently generating about 0.61 per unit of volatility. If you would invest 2,002,466 in DAX Index on November 2, 2024 and sell it today you would earn a total of 170,254 from holding DAX Index or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. DAX Index
Performance |
| Timeline |
NTG Nordic and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
NTG Nordic Transport
Pair trading matchups for NTG Nordic
DAX Index
Pair trading matchups for DAX Index
Pair Trading with NTG Nordic and DAX Index
The main advantage of trading using opposite NTG Nordic and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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.| NTG Nordic vs. Verizon Communications | NTG Nordic vs. ANGLO ASIAN MINING | NTG Nordic vs. HUTCHISON TELECOMM | NTG Nordic vs. Ribbon Communications |
| DAX Index vs. Fuji Media Holdings | DAX Index vs. PENN Entertainment | DAX Index vs. WILLIS LEASE FIN | DAX Index vs. Live Nation Entertainment |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |