Correlation Between DAX Index and SINGAPORE POST
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By analyzing existing cross correlation between DAX Index and SINGAPORE POST, you can compare the effects of market volatilities on DAX Index and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SINGAPORE POST.
Diversification Opportunities for DAX Index and SINGAPORE POST
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and SINGAPORE is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of DAX Index i.e., DAX Index and SINGAPORE POST go up and down completely randomly.
Pair Corralation between DAX Index and SINGAPORE POST
Assuming the 90 days trading horizon DAX Index is expected to generate 1.25 times less return on investment than SINGAPORE POST. But when comparing it to its historical volatility, DAX Index is 3.19 times less risky than SINGAPORE POST. It trades about 0.18 of its potential returns per unit of risk. SINGAPORE POST is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 37.00 in SINGAPORE POST on September 24, 2024 and sell it today you would earn a total of 1.00 from holding SINGAPORE POST or generate 2.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. SINGAPORE POST
Performance |
Timeline |
DAX Index and SINGAPORE POST Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
SINGAPORE POST
Pair trading matchups for SINGAPORE POST
Pair Trading with DAX Index and SINGAPORE POST
The main advantage of trading using opposite DAX Index and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST'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 |
SINGAPORE POST vs. Kuehne Nagel International | SINGAPORE POST vs. ZTO EXPRESS | SINGAPORE POST vs. NIKKON HOLDINGS TD | SINGAPORE POST vs. SENKO GROUP HOLDINGS |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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