Correlation Between DAX Index and FUJITSU
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and FUJITSU LTD ADR, you can compare the effects of market volatilities on DAX Index and FUJITSU 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 FUJITSU. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FUJITSU.
Diversification Opportunities for DAX Index and FUJITSU
Average diversification
The 3 months correlation between DAX and FUJITSU is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FUJITSU LTD ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJITSU LTD ADR 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 FUJITSU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJITSU LTD ADR has no effect on the direction of DAX Index i.e., DAX Index and FUJITSU go up and down completely randomly.
Pair Corralation between DAX Index and FUJITSU
Assuming the 90 days trading horizon DAX Index is expected to generate 0.41 times more return on investment than FUJITSU. However, DAX Index is 2.42 times less risky than FUJITSU. It trades about 0.2 of its potential returns per unit of risk. FUJITSU LTD ADR is currently generating about 0.02 per unit of risk. If you would invest 1,830,190 in DAX Index on September 6, 2024 and sell it today you would earn a total of 205,690 from holding DAX Index or generate 11.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. FUJITSU LTD ADR
Performance |
Timeline |
DAX Index and FUJITSU Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
FUJITSU LTD ADR
Pair trading matchups for FUJITSU
Pair Trading with DAX Index and FUJITSU
The main advantage of trading using opposite DAX Index and FUJITSU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FUJITSU 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 FUJITSU will offset losses from the drop in FUJITSU's long position.DAX Index vs. Direct Line Insurance | DAX Index vs. Tencent Music Entertainment | DAX Index vs. INSURANCE AUST GRP | DAX Index vs. TOWNSQUARE MEDIA INC |
FUJITSU vs. Air New Zealand | FUJITSU vs. LAir Liquide SA | FUJITSU vs. SEALED AIR | FUJITSU vs. Nucletron Electronic Aktiengesellschaft |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |