Correlation Between DAX Index and Markel
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By analyzing existing cross correlation between DAX Index and Markel, you can compare the effects of market volatilities on DAX Index and Markel 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 Markel. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Markel.
Diversification Opportunities for DAX Index and Markel
Weak diversification
The 3 months correlation between DAX and Markel is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Markel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel 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 Markel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel has no effect on the direction of DAX Index i.e., DAX Index and Markel go up and down completely randomly.
Pair Corralation between DAX Index and Markel
Assuming the 90 days trading horizon DAX Index is expected to generate 0.63 times more return on investment than Markel. However, DAX Index is 1.59 times less risky than Markel. It trades about 0.17 of its potential returns per unit of risk. Markel is currently generating about 0.05 per unit of risk. If you would invest 1,990,914 in DAX Index on December 30, 2024 and sell it today you would earn a total of 255,238 from holding DAX Index or generate 12.82% 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. Markel
Performance |
Timeline |
DAX Index and Markel Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Pair Trading with DAX Index and Markel
The main advantage of trading using opposite DAX Index and Markel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Markel 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 Markel will offset losses from the drop in Markel's long position.DAX Index vs. SPORTING | DAX Index vs. Air Transport Services | DAX Index vs. GAMES OPERATORS SA | DAX Index vs. CI GAMES SA |
Markel vs. SmarTone Telecommunications Holdings | Markel vs. SPARTAN STORES | Markel vs. INTERSHOP Communications Aktiengesellschaft | Markel vs. Retail Estates NV |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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