Correlation Between DAX Index and Anhui Conch
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By analyzing existing cross correlation between DAX Index and Anhui Conch Cement, you can compare the effects of market volatilities on DAX Index and Anhui Conch 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 Anhui Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Anhui Conch.
Diversification Opportunities for DAX Index and Anhui Conch
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Anhui is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Anhui Conch Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Conch Cement 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 Anhui Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Conch Cement has no effect on the direction of DAX Index i.e., DAX Index and Anhui Conch go up and down completely randomly.
Pair Corralation between DAX Index and Anhui Conch
Assuming the 90 days trading horizon DAX Index is expected to generate 1.6 times less return on investment than Anhui Conch. But when comparing it to its historical volatility, DAX Index is 4.62 times less risky than Anhui Conch. It trades about 0.09 of its potential returns per unit of risk. Anhui Conch Cement is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Anhui Conch Cement on September 23, 2024 and sell it today you would earn a total of 13.00 from holding Anhui Conch Cement or generate 5.88% 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. Anhui Conch Cement
Performance |
Timeline |
DAX Index and Anhui Conch Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Anhui Conch Cement
Pair trading matchups for Anhui Conch
Pair Trading with DAX Index and Anhui Conch
The main advantage of trading using opposite DAX Index and Anhui Conch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Anhui Conch 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 Anhui Conch will offset losses from the drop in Anhui Conch'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 |
Anhui Conch vs. SUN ART RETAIL | Anhui Conch vs. Mitsui Chemicals | Anhui Conch vs. EPSILON HEALTHCARE LTD | Anhui Conch vs. FAST RETAIL ADR |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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