Correlation Between DAX Index and OAR RESOURCES
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By analyzing existing cross correlation between DAX Index and OAR RESOURCES LTD, you can compare the effects of market volatilities on DAX Index and OAR RESOURCES 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 OAR RESOURCES. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and OAR RESOURCES.
Diversification Opportunities for DAX Index and OAR RESOURCES
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and OAR is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and OAR RESOURCES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAR RESOURCES LTD 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 OAR RESOURCES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAR RESOURCES LTD has no effect on the direction of DAX Index i.e., DAX Index and OAR RESOURCES go up and down completely randomly.
Pair Corralation between DAX Index and OAR RESOURCES
Assuming the 90 days trading horizon DAX Index is expected to generate 87.7 times less return on investment than OAR RESOURCES. But when comparing it to its historical volatility, DAX Index is 92.82 times less risky than OAR RESOURCES. It trades about 0.1 of its potential returns per unit of risk. OAR RESOURCES LTD is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 60.00 in OAR RESOURCES LTD on September 20, 2024 and sell it today you would lose (57.45) from holding OAR RESOURCES LTD or give up 95.75% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
DAX Index vs. OAR RESOURCES LTD
Performance |
Timeline |
DAX Index and OAR RESOURCES Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
OAR RESOURCES LTD
Pair trading matchups for OAR RESOURCES
Pair Trading with DAX Index and OAR RESOURCES
The main advantage of trading using opposite DAX Index and OAR RESOURCES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, OAR RESOURCES 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 OAR RESOURCES will offset losses from the drop in OAR RESOURCES's long position.DAX Index vs. Warner Music Group | DAX Index vs. Take Two Interactive Software | DAX Index vs. Sixt Leasing SE | DAX Index vs. JAPAN TOBACCO UNSPADR12 |
OAR RESOURCES vs. SIEM OFFSHORE NEW | OAR RESOURCES vs. HEMISPHERE EGY | OAR RESOURCES vs. Consolidated Communications Holdings | OAR RESOURCES vs. Highlight Communications AG |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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