Correlation Between DAX Index and Dentsu
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Dentsu Group, you can compare the effects of market volatilities on DAX Index and Dentsu 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 Dentsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Dentsu.
Diversification Opportunities for DAX Index and Dentsu
Very good diversification
The 3 months correlation between DAX and Dentsu is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Dentsu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dentsu Group 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 Dentsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dentsu Group has no effect on the direction of DAX Index i.e., DAX Index and Dentsu go up and down completely randomly.
Pair Corralation between DAX Index and Dentsu
Assuming the 90 days trading horizon DAX Index is expected to generate 0.39 times more return on investment than Dentsu. However, DAX Index is 2.56 times less risky than Dentsu. It trades about 0.08 of its potential returns per unit of risk. Dentsu Group 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. Dentsu Group
Performance |
Timeline |
DAX Index and Dentsu Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Dentsu Group
Pair trading matchups for Dentsu
Pair Trading with DAX Index and Dentsu
The main advantage of trading using opposite DAX Index and Dentsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Dentsu 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 Dentsu will offset losses from the drop in Dentsu's long position.DAX Index vs. Universal Display | DAX Index vs. Playtech plc | DAX Index vs. Columbia Sportswear | DAX Index vs. PLAYMATES TOYS |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Commodity Directory Find actively traded commodities issued by global exchanges |