Correlation Between DAX Index and ENGIE Eps
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By analyzing existing cross correlation between DAX Index and ENGIE Eps SA, you can compare the effects of market volatilities on DAX Index and ENGIE Eps 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 ENGIE Eps. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ENGIE Eps.
Diversification Opportunities for DAX Index and ENGIE Eps
Weak diversification
The 3 months correlation between DAX and ENGIE is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ENGIE Eps SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGIE Eps SA 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 ENGIE Eps. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGIE Eps SA has no effect on the direction of DAX Index i.e., DAX Index and ENGIE Eps go up and down completely randomly.
Pair Corralation between DAX Index and ENGIE Eps
If you would invest 1,926,175 in DAX Index on September 28, 2024 and sell it today you would earn a total of 58,702 from holding DAX Index or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 55.0% |
Values | Daily Returns |
DAX Index vs. ENGIE Eps SA
Performance |
Timeline |
DAX Index and ENGIE Eps Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
ENGIE Eps SA
Pair trading matchups for ENGIE Eps
Pair Trading with DAX Index and ENGIE Eps
The main advantage of trading using opposite DAX Index and ENGIE Eps positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ENGIE Eps 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 ENGIE Eps will offset losses from the drop in ENGIE Eps' long position.DAX Index vs. Ultra Clean Holdings | DAX Index vs. Consolidated Communications Holdings | DAX Index vs. VITEC SOFTWARE GROUP | DAX Index vs. Check Point Software |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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