Correlation Between DAX Index and FedEx
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By analyzing existing cross correlation between DAX Index and FedEx, you can compare the effects of market volatilities on DAX Index and FedEx 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 FedEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FedEx.
Diversification Opportunities for DAX Index and FedEx
Weak diversification
The 3 months correlation between DAX and FedEx is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FedEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx 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 FedEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx has no effect on the direction of DAX Index i.e., DAX Index and FedEx go up and down completely randomly.
Pair Corralation between DAX Index and FedEx
Assuming the 90 days trading horizon DAX Index is expected to generate 1.75 times less return on investment than FedEx. But when comparing it to its historical volatility, DAX Index is 2.51 times less risky than FedEx. It trades about 0.09 of its potential returns per unit of risk. FedEx is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 15,518 in FedEx on September 23, 2024 and sell it today you would earn a total of 10,957 from holding FedEx or generate 70.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. FedEx
Performance |
Timeline |
DAX Index and FedEx Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
FedEx
Pair trading matchups for FedEx
Pair Trading with DAX Index and FedEx
The main advantage of trading using opposite DAX Index and FedEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FedEx 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 FedEx will offset losses from the drop in FedEx'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 |
FedEx vs. United Parcel Service | FedEx vs. Deutsche Post AG | FedEx vs. DSV Panalpina AS | FedEx vs. ZTO Express |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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