Correlation Between DAX Index and KWESST MICRO
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By analyzing existing cross correlation between DAX Index and KWESST MICRO SYSINC, you can compare the effects of market volatilities on DAX Index and KWESST MICRO 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 KWESST MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and KWESST MICRO.
Diversification Opportunities for DAX Index and KWESST MICRO
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and KWESST is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and KWESST MICRO SYSINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KWESST MICRO SYSINC 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 KWESST MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KWESST MICRO SYSINC has no effect on the direction of DAX Index i.e., DAX Index and KWESST MICRO go up and down completely randomly.
Pair Corralation between DAX Index and KWESST MICRO
Assuming the 90 days trading horizon DAX Index is expected to generate 114.81 times less return on investment than KWESST MICRO. But when comparing it to its historical volatility, DAX Index is 145.49 times less risky than KWESST MICRO. It trades about 0.13 of its potential returns per unit of risk. KWESST MICRO SYSINC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 70.00 in KWESST MICRO SYSINC on September 19, 2024 and sell it today you would lose (14.00) from holding KWESST MICRO SYSINC or give up 20.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
DAX Index vs. KWESST MICRO SYSINC
Performance |
Timeline |
DAX Index and KWESST MICRO Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
KWESST MICRO SYSINC
Pair trading matchups for KWESST MICRO
Pair Trading with DAX Index and KWESST MICRO
The main advantage of trading using opposite DAX Index and KWESST MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, KWESST MICRO 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 KWESST MICRO will offset losses from the drop in KWESST MICRO's long position.DAX Index vs. Sekisui Chemical Co | DAX Index vs. United Internet AG | DAX Index vs. X FAB Silicon Foundries | DAX Index vs. TIANDE CHEMICAL |
KWESST MICRO vs. PKSHA TECHNOLOGY INC | KWESST MICRO vs. ASURE SOFTWARE | KWESST MICRO vs. SOFI TECHNOLOGIES | KWESST MICRO vs. Check Point Software |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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