Correlation Between DAX Index and INMED PHARMACEUTICALS
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By analyzing existing cross correlation between DAX Index and INMED PHARMACEUTICALS INC, you can compare the effects of market volatilities on DAX Index and INMED PHARMACEUTICALS 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 INMED PHARMACEUTICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and INMED PHARMACEUTICALS.
Diversification Opportunities for DAX Index and INMED PHARMACEUTICALS
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and INMED is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and INMED PHARMACEUTICALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INMED PHARMACEUTICALS INC 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 INMED PHARMACEUTICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INMED PHARMACEUTICALS INC has no effect on the direction of DAX Index i.e., DAX Index and INMED PHARMACEUTICALS go up and down completely randomly.
Pair Corralation between DAX Index and INMED PHARMACEUTICALS
Assuming the 90 days trading horizon DAX Index is expected to generate 5.01 times less return on investment than INMED PHARMACEUTICALS. But when comparing it to its historical volatility, DAX Index is 21.79 times less risky than INMED PHARMACEUTICALS. It trades about 0.08 of its potential returns per unit of risk. INMED PHARMACEUTICALS INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,590 in INMED PHARMACEUTICALS INC on September 26, 2024 and sell it today you would lose (3,196) from holding INMED PHARMACEUTICALS INC or give up 89.03% 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. INMED PHARMACEUTICALS INC
Performance |
Timeline |
DAX Index and INMED PHARMACEUTICALS Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
INMED PHARMACEUTICALS INC
Pair trading matchups for INMED PHARMACEUTICALS
Pair Trading with DAX Index and INMED PHARMACEUTICALS
The main advantage of trading using opposite DAX Index and INMED PHARMACEUTICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, INMED PHARMACEUTICALS 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 INMED PHARMACEUTICALS will offset losses from the drop in INMED PHARMACEUTICALS's long position.DAX Index vs. CODERE ONLINE LUX | DAX Index vs. CARSALESCOM | DAX Index vs. PACIFIC ONLINE | DAX Index vs. Focus Home Interactive |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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