Correlation Between DAX Index and IShares III
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By analyzing existing cross correlation between DAX Index and iShares III Public, you can compare the effects of market volatilities on DAX Index and IShares III 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 IShares III. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and IShares III.
Diversification Opportunities for DAX Index and IShares III
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DAX and IShares is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and iShares III Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares III Public 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 IShares III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares III Public has no effect on the direction of DAX Index i.e., DAX Index and IShares III go up and down completely randomly.
Pair Corralation between DAX Index and IShares III
Assuming the 90 days trading horizon DAX Index is expected to under-perform the IShares III. In addition to that, DAX Index is 57.08 times more volatile than iShares III Public. It trades about -0.1 of its total potential returns per unit of risk. iShares III Public is currently generating about 0.73 per unit of volatility. If you would invest 9,880 in iShares III Public on January 28, 2024 and sell it today you would earn a total of 22.00 from holding iShares III Public or generate 0.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. iShares III Public
Performance |
Timeline |
DAX Index and IShares III Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
iShares III Public
Pair trading matchups for IShares III
Pair Trading with DAX Index and IShares III
The main advantage of trading using opposite DAX Index and IShares III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, IShares III 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 IShares III will offset losses from the drop in IShares III's long position.DAX Index vs. HYDROFARM HLD GRP | DAX Index vs. EVS Broadcast Equipment | DAX Index vs. Yuexiu Transport Infrastructure | DAX Index vs. Fukuyama Transporting Co |
IShares III vs. iShares Govt Bond | IShares III vs. iShares Global AAA AA | IShares III vs. iShares Smart City | IShares III vs. iShares Broad High |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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