Correlation Between ICEX Main and DAX Index
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By analyzing existing cross correlation between ICEX Main and DAX Index, you can compare the effects of market volatilities on ICEX Main 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 ICEX Main with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICEX Main and DAX Index.
Diversification Opportunities for ICEX Main and DAX Index
Pay attention - limited upside
The 3 months correlation between ICEX and DAX is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding ICEX Main and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and ICEX Main 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 ICEX Main 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 ICEX Main i.e., ICEX Main and DAX Index go up and down completely randomly.
Pair Corralation between ICEX Main and DAX Index
Assuming the 90 days trading horizon ICEX Main is expected to generate 0.89 times more return on investment than DAX Index. However, ICEX Main is 1.13 times less risky than DAX Index. It trades about 0.17 of its potential returns per unit of risk. DAX Index is currently generating about -0.12 per unit of risk. If you would invest 204,496 in ICEX Main on February 4, 2024 and sell it today you would earn a total of 5,439 from holding ICEX Main or generate 2.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
ICEX Main vs. DAX Index
Performance |
Timeline |
ICEX Main and DAX Index Volatility Contrast
Predicted Return Density |
Returns |
ICEX Main
Pair trading matchups for ICEX Main
DAX Index
Pair trading matchups for DAX Index
Pair Trading with ICEX Main and DAX Index
The main advantage of trading using opposite ICEX Main and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICEX Main 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.ICEX Main vs. Alvotech | ICEX Main vs. Kvika banki hf | ICEX Main vs. slandsbanki hf | ICEX Main vs. Iceland Seafood International |
DAX Index vs. Silicon Motion Technology | DAX Index vs. Xiabuxiabu Catering Management | DAX Index vs. X Fab Silicon | DAX Index vs. Platinum Investment Management |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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