Correlation Between DAX Index and Pinduoduo
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By analyzing existing cross correlation between DAX Index and Pinduoduo, you can compare the effects of market volatilities on DAX Index and Pinduoduo 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 Pinduoduo. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Pinduoduo.
Diversification Opportunities for DAX Index and Pinduoduo
Very good diversification
The 3 months correlation between DAX and Pinduoduo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Pinduoduo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinduoduo 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 Pinduoduo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinduoduo has no effect on the direction of DAX Index i.e., DAX Index and Pinduoduo go up and down completely randomly.
Pair Corralation between DAX Index and Pinduoduo
Assuming the 90 days trading horizon DAX Index is expected to generate 0.22 times more return on investment than Pinduoduo. However, DAX Index is 4.55 times less risky than Pinduoduo. It trades about 0.07 of its potential returns per unit of risk. Pinduoduo is currently generating about -0.08 per unit of risk. If you would invest 1,923,836 in DAX Index on September 26, 2024 and sell it today you would earn a total of 61,041 from holding DAX Index or generate 3.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. Pinduoduo
Performance |
Timeline |
DAX Index and Pinduoduo Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Pinduoduo
Pair trading matchups for Pinduoduo
Pair Trading with DAX Index and Pinduoduo
The main advantage of trading using opposite DAX Index and Pinduoduo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Pinduoduo 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 Pinduoduo will offset losses from the drop in Pinduoduo'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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