Correlation Between DAX Index and Stryker

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both DAX Index and Stryker at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DAX Index and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAX Index and Stryker, you can compare the effects of market volatilities on DAX Index and Stryker 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 Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Stryker.

Diversification Opportunities for DAX Index and Stryker

-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between DAX and Stryker is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of DAX Index i.e., DAX Index and Stryker go up and down completely randomly.
    Optimize

Pair Corralation between DAX Index and Stryker

Assuming the 90 days trading horizon DAX Index is expected to generate 0.69 times more return on investment than Stryker. However, DAX Index is 1.44 times less risky than Stryker. It trades about 0.12 of its potential returns per unit of risk. Stryker is currently generating about -0.07 per unit of risk. If you would invest  1,771,671  in DAX Index on March 6, 2024 and sell it today you would earn a total of  89,145  from holding DAX Index or generate 5.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

DAX Index  vs.  Stryker

 Performance 
       Timeline  

DAX Index and Stryker Volatility Contrast

   Predicted Return Density   
       Returns  
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY