Correlation Between DAX Index and AURUBIS AG
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By analyzing existing cross correlation between DAX Index and AURUBIS AG UNSPADR, you can compare the effects of market volatilities on DAX Index and AURUBIS AG 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 AURUBIS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and AURUBIS AG.
Diversification Opportunities for DAX Index and AURUBIS AG
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and AURUBIS is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and AURUBIS AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AURUBIS AG UNSPADR 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 AURUBIS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AURUBIS AG UNSPADR has no effect on the direction of DAX Index i.e., DAX Index and AURUBIS AG go up and down completely randomly.
Pair Corralation between DAX Index and AURUBIS AG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.24 times more return on investment than AURUBIS AG. However, DAX Index is 4.11 times less risky than AURUBIS AG. It trades about 0.17 of its potential returns per unit of risk. AURUBIS AG UNSPADR is currently generating about 0.0 per unit of risk. If you would invest 1,940,520 in DAX Index on September 25, 2024 and sell it today you would earn a total of 44,357 from holding DAX Index or generate 2.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
DAX Index vs. AURUBIS AG UNSPADR
Performance |
Timeline |
DAX Index and AURUBIS AG Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
AURUBIS AG UNSPADR
Pair trading matchups for AURUBIS AG
Pair Trading with DAX Index and AURUBIS AG
The main advantage of trading using opposite DAX Index and AURUBIS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, AURUBIS AG 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 AURUBIS AG will offset losses from the drop in AURUBIS AG's long position.DAX Index vs. Universal Display | DAX Index vs. Playtech plc | DAX Index vs. Columbia Sportswear | DAX Index vs. PLAYMATES TOYS |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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