Correlation Between CARSALESCOM and SDAX Index
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By analyzing existing cross correlation between CARSALESCOM and SDAX Index, you can compare the effects of market volatilities on CARSALESCOM and SDAX 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 CARSALESCOM with a short position of SDAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALESCOM and SDAX Index.
Diversification Opportunities for CARSALESCOM and SDAX Index
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CARSALESCOM and SDAX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM and SDAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDAX Index and CARSALESCOM 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 CARSALESCOM are associated (or correlated) with SDAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDAX Index has no effect on the direction of CARSALESCOM i.e., CARSALESCOM and SDAX Index go up and down completely randomly.
Pair Corralation between CARSALESCOM and SDAX Index
Assuming the 90 days trading horizon CARSALESCOM is expected to under-perform the SDAX Index. In addition to that, CARSALESCOM is 1.57 times more volatile than SDAX Index. It trades about -0.15 of its total potential returns per unit of risk. SDAX Index is currently generating about 0.13 per unit of volatility. If you would invest 1,338,325 in SDAX Index on October 9, 2024 and sell it today you would earn a total of 62,511 from holding SDAX Index or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARSALESCOM vs. SDAX Index
Performance |
| Timeline |
CARSALESCOM and SDAX Index Volatility Contrast
Predicted Return Density |
| Returns |
CARSALESCOM
Pair trading matchups for CARSALESCOM
SDAX Index
Pair trading matchups for SDAX Index
Pair Trading with CARSALESCOM and SDAX Index
The main advantage of trading using opposite CARSALESCOM and SDAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALESCOM position performs unexpectedly, SDAX 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 SDAX Index will offset losses from the drop in SDAX Index's long position.| CARSALESCOM vs. Apple Inc | CARSALESCOM vs. Apple Inc | CARSALESCOM vs. Apple Inc | CARSALESCOM vs. Apple Inc |
| SDAX Index vs. Renesas Electronics | SDAX Index vs. UNIVMUSIC GRPADR050 | SDAX Index vs. Advanced Medical Solutions | SDAX Index vs. Tencent Music 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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