Correlation Between DAX Index and SSC Technologies
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By analyzing existing cross correlation between DAX Index and SSC Technologies Holdings, you can compare the effects of market volatilities on DAX Index and SSC Technologies 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 SSC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and SSC Technologies.
Diversification Opportunities for DAX Index and SSC Technologies
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and SSC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and SSC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Technologies Holdings 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 SSC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Technologies Holdings has no effect on the direction of DAX Index i.e., DAX Index and SSC Technologies go up and down completely randomly.
Pair Corralation between DAX Index and SSC Technologies
Assuming the 90 days trading horizon DAX Index is expected to generate 1.31 times less return on investment than SSC Technologies. But when comparing it to its historical volatility, DAX Index is 1.13 times less risky than SSC Technologies. It trades about 0.17 of its potential returns per unit of risk. SSC Technologies Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,850 in SSC Technologies Holdings on April 24, 2025 and sell it today you would earn a total of 300.00 from holding SSC Technologies Holdings or generate 4.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. SSC Technologies Holdings
Performance |
Timeline |
DAX Index and SSC Technologies Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
SSC Technologies Holdings
Pair trading matchups for SSC Technologies
Pair Trading with DAX Index and SSC Technologies
The main advantage of trading using opposite DAX Index and SSC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, SSC Technologies 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 SSC Technologies will offset losses from the drop in SSC Technologies' long position.DAX Index vs. Geely Automobile Holdings | DAX Index vs. NORDHEALTH AS NK | DAX Index vs. NORTHEAST UTILITIES | DAX Index vs. Carsales |
SSC Technologies vs. Oracle | SSC Technologies vs. Fair Isaac | SSC Technologies vs. Wisetech Global | SSC Technologies vs. Okta Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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