Correlation Between DAX Index and FOMENTO STR
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and FOMENTO STR, you can compare the effects of market volatilities on DAX Index and FOMENTO STR 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 FOMENTO STR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and FOMENTO STR.
Diversification Opportunities for DAX Index and FOMENTO STR
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and FOMENTO is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and FOMENTO STR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOMENTO STR 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 FOMENTO STR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOMENTO STR has no effect on the direction of DAX Index i.e., DAX Index and FOMENTO STR go up and down completely randomly.
Pair Corralation between DAX Index and FOMENTO STR
Assuming the 90 days trading horizon DAX Index is expected to under-perform the FOMENTO STR. In addition to that, DAX Index is 1.11 times more volatile than FOMENTO STR. It trades about -0.11 of its total potential returns per unit of risk. FOMENTO STR is currently generating about 0.11 per unit of volatility. If you would invest 1,246 in FOMENTO STR on February 1, 2024 and sell it today you would earn a total of 22.00 from holding FOMENTO STR or generate 1.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
DAX Index vs. FOMENTO STR
Performance |
Timeline |
DAX Index and FOMENTO STR Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
FOMENTO STR
Pair trading matchups for FOMENTO STR
Pair Trading with DAX Index and FOMENTO STR
The main advantage of trading using opposite DAX Index and FOMENTO STR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, FOMENTO STR 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 FOMENTO STR will offset losses from the drop in FOMENTO STR's long position.DAX Index vs. 24SEVENOFFICE GROUP AB | DAX Index vs. KENEDIX OFFICE INV | DAX Index vs. Marie Brizard Wine | DAX Index vs. Virtus Investment Partners |
FOMENTO STR vs. JAPAN TOBACCO UNSPADR12 | FOMENTO STR vs. Hanison Construction Holdings | FOMENTO STR vs. FARM 51 GROUP | FOMENTO STR vs. SLR Investment Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |