Correlation Between DAX Index and PENINSULA ENERG
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By analyzing existing cross correlation between DAX Index and PENINSULA ENERG, you can compare the effects of market volatilities on DAX Index and PENINSULA ENERG 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 PENINSULA ENERG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PENINSULA ENERG.
Diversification Opportunities for DAX Index and PENINSULA ENERG
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and PENINSULA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PENINSULA ENERG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENINSULA ENERG 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 PENINSULA ENERG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENINSULA ENERG has no effect on the direction of DAX Index i.e., DAX Index and PENINSULA ENERG go up and down completely randomly.
Pair Corralation between DAX Index and PENINSULA ENERG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.11 times more return on investment than PENINSULA ENERG. However, DAX Index is 8.88 times less risky than PENINSULA ENERG. It trades about 0.11 of its potential returns per unit of risk. PENINSULA ENERG is currently generating about -0.07 per unit of risk. If you would invest 1,884,679 in DAX Index on September 23, 2024 and sell it today you would earn a total of 103,796 from holding DAX Index or generate 5.51% 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. PENINSULA ENERG
Performance |
Timeline |
DAX Index and PENINSULA ENERG Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
PENINSULA ENERG
Pair trading matchups for PENINSULA ENERG
Pair Trading with DAX Index and PENINSULA ENERG
The main advantage of trading using opposite DAX Index and PENINSULA ENERG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PENINSULA ENERG 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 PENINSULA ENERG will offset losses from the drop in PENINSULA ENERG'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 |
PENINSULA ENERG vs. Apple Inc | PENINSULA ENERG vs. Apple Inc | PENINSULA ENERG vs. Apple Inc | PENINSULA ENERG vs. Apple Inc |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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