Correlation Between DAX Index and PT Barito
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By analyzing existing cross correlation between DAX Index and PT Barito Pacific, you can compare the effects of market volatilities on DAX Index and PT Barito 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 PT Barito. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PT Barito.
Diversification Opportunities for DAX Index and PT Barito
Very good diversification
The 3 months correlation between DAX and OB8 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PT Barito Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Barito Pacific 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 PT Barito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Barito Pacific has no effect on the direction of DAX Index i.e., DAX Index and PT Barito go up and down completely randomly.
Pair Corralation between DAX Index and PT Barito
Assuming the 90 days trading horizon DAX Index is expected to generate 0.11 times more return on investment than PT Barito. However, DAX Index is 8.91 times less risky than PT Barito. It trades about 0.08 of its potential returns per unit of risk. PT Barito Pacific is currently generating about -0.06 per unit of risk. If you would invest 1,937,762 in DAX Index on September 23, 2024 and sell it today you would earn a total of 50,713 from holding DAX Index or generate 2.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. PT Barito Pacific
Performance |
Timeline |
DAX Index and PT Barito Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
PT Barito Pacific
Pair trading matchups for PT Barito
Pair Trading with DAX Index and PT Barito
The main advantage of trading using opposite DAX Index and PT Barito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PT Barito 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 PT Barito will offset losses from the drop in PT Barito'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 |
PT Barito vs. Air Liquide SA | PT Barito vs. AIR LIQUIDE ADR | PT Barito vs. Air Products and | PT Barito vs. Shin Etsu Chemical Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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