Correlation Between DAX Index and MOLSON RS
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By analyzing existing cross correlation between DAX Index and MOLSON RS CDA, you can compare the effects of market volatilities on DAX Index and MOLSON RS 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 MOLSON RS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and MOLSON RS.
Diversification Opportunities for DAX Index and MOLSON RS
Very weak diversification
The 3 months correlation between DAX and MOLSON is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and MOLSON RS CDA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS CDA 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 MOLSON RS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS CDA has no effect on the direction of DAX Index i.e., DAX Index and MOLSON RS go up and down completely randomly.
Pair Corralation between DAX Index and MOLSON RS
Assuming the 90 days trading horizon DAX Index is expected to generate 0.6 times more return on investment than MOLSON RS. However, DAX Index is 1.66 times less risky than MOLSON RS. It trades about 0.18 of its potential returns per unit of risk. MOLSON RS CDA is currently generating about -0.03 per unit of risk. 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 Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. MOLSON RS CDA
Performance |
Timeline |
DAX Index and MOLSON RS Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
MOLSON RS CDA
Pair trading matchups for MOLSON RS
Pair Trading with DAX Index and MOLSON RS
The main advantage of trading using opposite DAX Index and MOLSON RS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, MOLSON RS 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 MOLSON RS will offset losses from the drop in MOLSON RS's long position.DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
MOLSON RS vs. Fomento Econmico Mexicano | MOLSON RS vs. Anheuser Busch InBev SANV | MOLSON RS vs. Anheuser Busch InBev SANV | MOLSON RS vs. BUDWEISER BREWUNSPADR4 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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