Correlation Between Tradegate and DAX Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and DAX Index, you can compare the effects of market volatilities on Tradegate 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 Tradegate with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and DAX Index.
Diversification Opportunities for Tradegate and DAX Index
Good diversification
The 3 months correlation between Tradegate and DAX is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Tradegate 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 Tradegate AG Wertpapierhandelsbank 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 Tradegate i.e., Tradegate and DAX Index go up and down completely randomly.
Pair Corralation between Tradegate and DAX Index
Assuming the 90 days horizon Tradegate is expected to generate 174.3 times less return on investment than DAX Index. But when comparing it to its historical volatility, Tradegate AG Wertpapierhandelsbank is 1.43 times less risky than DAX Index. It trades about 0.0 of its potential returns per unit of risk. DAX Index is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,914,617 in DAX Index on September 22, 2024 and sell it today you would earn a total of 73,858 from holding DAX Index or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. DAX Index
Performance |
| Timeline |
Tradegate and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Tradegate AG Wertpapierhandelsbank
Pair trading matchups for Tradegate
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Tradegate and DAX Index
The main advantage of trading using opposite Tradegate and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate 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.| Tradegate vs. Morgan Stanley | Tradegate vs. Morgan Stanley | Tradegate vs. The Charles Schwab | Tradegate vs. The Goldman Sachs |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |