Correlation Between Seven West and DAX Index
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By analyzing existing cross correlation between Seven West Media and DAX Index, you can compare the effects of market volatilities on Seven West 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 Seven West with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seven West and DAX Index.
Diversification Opportunities for Seven West and DAX Index
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seven and DAX is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Seven West Media and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Seven West 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 Seven West Media 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 Seven West i.e., Seven West and DAX Index go up and down completely randomly.
Pair Corralation between Seven West and DAX Index
Assuming the 90 days horizon Seven West Media is expected to under-perform the DAX Index. In addition to that, Seven West is 10.13 times more volatile than DAX Index. It trades about -0.04 of its total potential returns per unit of risk. DAX Index is currently generating about 0.18 per unit of volatility. If you would invest 1,940,520 in DAX Index on September 24, 2024 and sell it today you would earn a total of 47,955 from holding DAX Index or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seven West Media vs. DAX Index
Performance |
| Timeline |
Seven West and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Seven West Media
Pair trading matchups for Seven West
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Seven West and DAX Index
The main advantage of trading using opposite Seven West and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seven West 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.| Seven West vs. Live Nation Entertainment | Seven West vs. CTS Eventim AG | Seven West vs. Fuji Media Holdings | Seven West vs. Cinemark Holdings |
| DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
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 Directory module to find actively traded commodities issued by global exchanges.
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