Correlation Between DAX Index and HEALTHCARE TRPFD
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By analyzing existing cross correlation between DAX Index and HEALTHCARE TRPFD SH, you can compare the effects of market volatilities on DAX Index and HEALTHCARE TRPFD 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 HEALTHCARE TRPFD. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and HEALTHCARE TRPFD.
Diversification Opportunities for DAX Index and HEALTHCARE TRPFD
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and HEALTHCARE is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and HEALTHCARE TRPFD SH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHCARE TRPFD 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 HEALTHCARE TRPFD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHCARE TRPFD has no effect on the direction of DAX Index i.e., DAX Index and HEALTHCARE TRPFD go up and down completely randomly.
Pair Corralation between DAX Index and HEALTHCARE TRPFD
Assuming the 90 days trading horizon DAX Index is expected to under-perform the HEALTHCARE TRPFD. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 4.2 times less risky than HEALTHCARE TRPFD. The index trades about -0.04 of its potential returns per unit of risk. The HEALTHCARE TRPFD SH is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,303 in HEALTHCARE TRPFD SH on October 15, 2024 and sell it today you would lose (3.00) from holding HEALTHCARE TRPFD SH or give up 0.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. HEALTHCARE TRPFD SH
Performance |
Timeline |
DAX Index and HEALTHCARE TRPFD Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
HEALTHCARE TRPFD SH
Pair trading matchups for HEALTHCARE TRPFD
Pair Trading with DAX Index and HEALTHCARE TRPFD
The main advantage of trading using opposite DAX Index and HEALTHCARE TRPFD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, HEALTHCARE TRPFD 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 HEALTHCARE TRPFD will offset losses from the drop in HEALTHCARE TRPFD's long position.DAX Index vs. The Japan Steel | DAX Index vs. Khiron Life Sciences | DAX Index vs. TRADELINK ELECTRON | DAX Index vs. Tradegate AG Wertpapierhandelsbank |
HEALTHCARE TRPFD vs. Apple Inc | HEALTHCARE TRPFD vs. Apple Inc | HEALTHCARE TRPFD vs. Apple Inc | HEALTHCARE TRPFD vs. Apple Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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