Correlation Between TRADEDOUBLER and DAX Index

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and DAX Index at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TRADEDOUBLER and DAX Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and DAX Index, you can compare the effects of market volatilities on TRADEDOUBLER 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 TRADEDOUBLER with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and DAX Index.

Diversification Opportunities for TRADEDOUBLER and DAX Index

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between TRADEDOUBLER and DAX is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and TRADEDOUBLER 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 TRADEDOUBLER AB SK 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 TRADEDOUBLER i.e., TRADEDOUBLER and DAX Index go up and down completely randomly.
    Optimize

Pair Corralation between TRADEDOUBLER and DAX Index

Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to under-perform the DAX Index. In addition to that, TRADEDOUBLER is 4.78 times more volatile than DAX Index. It trades about -0.01 of its total potential returns per unit of risk. DAX Index is currently generating about 0.08 per unit of volatility. If you would invest  1,832,558  in DAX Index on September 22, 2024 and sell it today you would earn a total of  155,917  from holding DAX Index or generate 8.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

TRADEDOUBLER AB SK  vs.  DAX Index

 Performance 
       Timeline  

TRADEDOUBLER and DAX Index Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TRADEDOUBLER and DAX Index

The main advantage of trading using opposite TRADEDOUBLER and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER 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.
TRADEDOUBLER vs. Superior Plus Corp
TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB
TRADEDOUBLER vs. NorAm Drilling AS
TRADEDOUBLER vs. Norsk Hydro ASA
The idea behind TRADEDOUBLER AB SK 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. Tradegate AG Wertpapierhandelsbank
DAX Index vs. TRADEDOUBLER AB SK
DAX Index vs. SALESFORCE INC CDR
DAX Index vs. CENTURIA OFFICE REIT
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY