Correlation Between DAX Index and Amphenol
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By analyzing existing cross correlation between DAX Index and Amphenol, you can compare the effects of market volatilities on DAX Index and Amphenol 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 Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Amphenol.
Diversification Opportunities for DAX Index and Amphenol
Very weak diversification
The 3 months correlation between DAX and Amphenol is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol 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 Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of DAX Index i.e., DAX Index and Amphenol go up and down completely randomly.
Pair Corralation between DAX Index and Amphenol
Assuming the 90 days trading horizon DAX Index is expected to generate 2.22 times less return on investment than Amphenol. But when comparing it to its historical volatility, DAX Index is 2.46 times less risky than Amphenol. It trades about 0.07 of its potential returns per unit of risk. Amphenol is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,651 in Amphenol on September 24, 2024 and sell it today you would earn a total of 1,149 from holding Amphenol or generate 20.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. Amphenol
Performance |
Timeline |
DAX Index and Amphenol Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Amphenol
Pair trading matchups for Amphenol
Pair Trading with DAX Index and Amphenol
The main advantage of trading using opposite DAX Index and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
Amphenol vs. Hon Hai Precision | Amphenol vs. Samsung SDI Co | Amphenol vs. Murata Manufacturing Co | Amphenol vs. Corning Incorporated |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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