Correlation Between DAX Index and JCDecaux
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By analyzing existing cross correlation between DAX Index and JCDecaux SA, you can compare the effects of market volatilities on DAX Index and JCDecaux 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 JCDecaux. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and JCDecaux.
Diversification Opportunities for DAX Index and JCDecaux
Very good diversification
The 3 months correlation between DAX and JCDecaux is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and JCDecaux SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCDecaux 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 JCDecaux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCDecaux SA has no effect on the direction of DAX Index i.e., DAX Index and JCDecaux go up and down completely randomly.
Pair Corralation between DAX Index and JCDecaux
Assuming the 90 days trading horizon DAX Index is expected to generate 0.37 times more return on investment than JCDecaux. However, DAX Index is 2.71 times less risky than JCDecaux. It trades about 0.08 of its potential returns per unit of risk. JCDecaux SA is currently generating about -0.01 per unit of risk. If you would invest 1,449,078 in DAX Index on September 25, 2024 and sell it today you would earn a total of 535,799 from holding DAX Index or generate 36.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. JCDecaux SA
Performance |
Timeline |
DAX Index and JCDecaux Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
JCDecaux SA
Pair trading matchups for JCDecaux
Pair Trading with DAX Index and JCDecaux
The main advantage of trading using opposite DAX Index and JCDecaux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, JCDecaux 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 JCDecaux will offset losses from the drop in JCDecaux's long position.DAX Index vs. Universal Display | DAX Index vs. Playtech plc | DAX Index vs. Columbia Sportswear | DAX Index vs. PLAYMATES TOYS |
JCDecaux vs. Publicis Groupe SA | JCDecaux vs. Omnicom Group | JCDecaux vs. WPP PLC | JCDecaux vs. WPP PLC 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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