Correlation Between Datang International and DAX Index
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By analyzing existing cross correlation between Datang International Power and DAX Index, you can compare the effects of market volatilities on Datang International 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 Datang International with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang International and DAX Index.
Diversification Opportunities for Datang International and DAX Index
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Datang and DAX is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Datang International Power and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Datang International 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 Datang International Power 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 Datang International i.e., Datang International and DAX Index go up and down completely randomly.
Pair Corralation between Datang International and DAX Index
Assuming the 90 days horizon Datang International Power is expected to generate 4.05 times more return on investment than DAX Index. However, Datang International is 4.05 times more volatile than DAX Index. It trades about 0.23 of its potential returns per unit of risk. DAX Index is currently generating about 0.18 per unit of risk. If you would invest 16.00 in Datang International Power on September 24, 2024 and sell it today you would earn a total of 2.00 from holding Datang International Power or generate 12.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Datang International Power vs. DAX Index
Performance |
Timeline |
Datang International and DAX Index Volatility Contrast
Predicted Return Density |
Returns |
Datang International Power
Pair trading matchups for Datang International
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Datang International and DAX Index
The main advantage of trading using opposite Datang International and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang International 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.Datang International vs. Yuexiu Transport Infrastructure | Datang International vs. Verizon Communications | Datang International vs. TITANIUM TRANSPORTGROUP | Datang International vs. QUEEN S ROAD |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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