Correlation Between THE PHILIPPINE and DAX Index
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By analyzing existing cross correlation between THE PHILIPPINE STOCK and DAX Index, you can compare the effects of market volatilities on THE PHILIPPINE and DAX Index 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 THE PHILIPPINE with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of THE PHILIPPINE and DAX Index.
Diversification Opportunities for THE PHILIPPINE and DAX Index
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between THE and DAX is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding THE PHILIPPINE STOCK and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and THE PHILIPPINE 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 THE PHILIPPINE STOCK are associated (or correlated) with DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of THE PHILIPPINE i.e., THE PHILIPPINE and DAX Index go up and down completely randomly.
Pair Corralation between THE PHILIPPINE and DAX Index
Assuming the 90 days trading horizon THE PHILIPPINE STOCK is expected to under-perform the DAX Index. In addition to that, THE PHILIPPINE is 1.16 times more volatile than DAX Index. It trades about -0.27 of its total potential returns per unit of risk. DAX Index is currently generating about -0.04 per unit of volatility. If you would invest 1,828,313 in DAX Index on January 30, 2024 and sell it today you would lose (12,212) from holding DAX Index or give up 0.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
THE PHILIPPINE STOCK vs. DAX Index
Performance |
Timeline |
THE PHILIPPINE and DAX Index Volatility Contrast
Predicted Return Density |
Returns |
THE PHILIPPINE STOCK
Pair trading matchups for THE PHILIPPINE
DAX Index
Pair trading matchups for DAX Index
Pair Trading with THE PHILIPPINE and DAX Index
The main advantage of trading using opposite THE PHILIPPINE and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THE PHILIPPINE position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.THE PHILIPPINE vs. Lepanto Consolidated Mining | THE PHILIPPINE vs. Integrated Micro Electronics | THE PHILIPPINE vs. Cebu Air Preferred | THE PHILIPPINE vs. Asia United Bank |
DAX Index vs. UMC Electronics Co | DAX Index vs. Renesas Electronics | DAX Index vs. Strategic Investments AS | DAX Index vs. Samsung Electronics Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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