Correlation Between DAX Index and CHINA VANKE
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By analyzing existing cross correlation between DAX Index and CHINA VANKE TD, you can compare the effects of market volatilities on DAX Index and CHINA VANKE 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 DAX Index with a short position of CHINA VANKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CHINA VANKE.
Diversification Opportunities for DAX Index and CHINA VANKE
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and CHINA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CHINA VANKE TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA VANKE TD and DAX Index 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 DAX Index are associated (or correlated) with CHINA VANKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA VANKE TD has no effect on the direction of DAX Index i.e., DAX Index and CHINA VANKE go up and down completely randomly.
Pair Corralation between DAX Index and CHINA VANKE
Assuming the 90 days trading horizon DAX Index is expected to generate 0.25 times more return on investment than CHINA VANKE. However, DAX Index is 4.01 times less risky than CHINA VANKE. It trades about 0.21 of its potential returns per unit of risk. CHINA VANKE TD is currently generating about -0.16 per unit of risk. If you would invest 1,932,259 in DAX Index on September 23, 2024 and sell it today you would earn a total of 56,216 from holding DAX Index or generate 2.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. CHINA VANKE TD
Performance |
Timeline |
DAX Index and CHINA VANKE Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
CHINA VANKE TD
Pair trading matchups for CHINA VANKE
Pair Trading with DAX Index and CHINA VANKE
The main advantage of trading using opposite DAX Index and CHINA VANKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CHINA VANKE 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 CHINA VANKE will offset losses from the drop in CHINA VANKE's long position.DAX Index vs. alstria office REIT AG | DAX Index vs. OFFICE DEPOT | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. MAVEN WIRELESS SWEDEN |
CHINA VANKE vs. Sun Hung Kai | CHINA VANKE vs. China Overseas Land | CHINA VANKE vs. Longfor Group Holdings | CHINA VANKE vs. Mitsui Fudosan Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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