Correlation Between DAX Index and REMEDY ENTERTAINMENT
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By analyzing existing cross correlation between DAX Index and REMEDY ENTERTAINMENT OYJ, you can compare the effects of market volatilities on DAX Index and REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and REMEDY ENTERTAINMENT.
Diversification Opportunities for DAX Index and REMEDY ENTERTAINMENT
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and REMEDY is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and REMEDY ENTERTAINMENT OYJ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REMEDY ENTERTAINMENT OYJ 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 REMEDY ENTERTAINMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REMEDY ENTERTAINMENT OYJ has no effect on the direction of DAX Index i.e., DAX Index and REMEDY ENTERTAINMENT go up and down completely randomly.
Pair Corralation between DAX Index and REMEDY ENTERTAINMENT
Assuming the 90 days trading horizon DAX Index is expected to generate 0.34 times more return on investment than REMEDY ENTERTAINMENT. However, DAX Index is 2.96 times less risky than REMEDY ENTERTAINMENT. It trades about 0.27 of its potential returns per unit of risk. REMEDY ENTERTAINMENT OYJ is currently generating about -0.05 per unit of risk. If you would invest 1,993,362 in DAX Index on December 2, 2024 and sell it today you would earn a total of 261,781 from holding DAX Index or generate 13.13% 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. REMEDY ENTERTAINMENT OYJ
Performance |
Timeline |
DAX Index and REMEDY ENTERTAINMENT Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
REMEDY ENTERTAINMENT OYJ
Pair trading matchups for REMEDY ENTERTAINMENT
Pair Trading with DAX Index and REMEDY ENTERTAINMENT
The main advantage of trading using opposite DAX Index and REMEDY ENTERTAINMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, REMEDY ENTERTAINMENT 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 REMEDY ENTERTAINMENT will offset losses from the drop in REMEDY ENTERTAINMENT's long position.DAX Index vs. Ross Stores | DAX Index vs. National Retail Properties | DAX Index vs. Fast Retailing Co | DAX Index vs. Gol Intelligent Airlines |
REMEDY ENTERTAINMENT vs. Tencent Music Entertainment | REMEDY ENTERTAINMENT vs. Fuji Media Holdings | REMEDY ENTERTAINMENT vs. SENECA FOODS A | REMEDY ENTERTAINMENT vs. Ubisoft Entertainment SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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