Correlation Between DAX Index and MT Bank
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By analyzing existing cross correlation between DAX Index and MT Bank Corp, you can compare the effects of market volatilities on DAX Index and MT Bank 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 MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and MT Bank.
Diversification Opportunities for DAX Index and MT Bank
Very good diversification
The 3 months correlation between DAX and MTZ is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp 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 MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of DAX Index i.e., DAX Index and MT Bank go up and down completely randomly.
Pair Corralation between DAX Index and MT Bank
Assuming the 90 days trading horizon DAX Index is expected to generate 0.73 times more return on investment than MT Bank. However, DAX Index is 1.37 times less risky than MT Bank. It trades about 0.18 of its potential returns per unit of risk. MT Bank Corp is currently generating about -0.14 per unit of risk. If you would invest 2,023,214 in DAX Index on December 4, 2024 and sell it today you would earn a total of 209,467 from holding DAX Index or generate 10.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
DAX Index vs. MT Bank Corp
Performance |
Timeline |
DAX Index and MT Bank Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
MT Bank Corp
Pair trading matchups for MT Bank
Pair Trading with DAX Index and MT Bank
The main advantage of trading using opposite DAX Index and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.DAX Index vs. Boston Beer Co | DAX Index vs. THAI BEVERAGE | DAX Index vs. SCANSOURCE | DAX Index vs. Strategic Education |
MT Bank vs. Tower One Wireless | MT Bank vs. ROYAL ROAD MIN | MT Bank vs. Spirent Communications plc | MT Bank vs. T Mobile |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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