Correlation Between DFS Furniture and Cboe UK
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By analyzing existing cross correlation between DFS Furniture PLC and Cboe UK Consumer, you can compare the effects of market volatilities on DFS Furniture and Cboe UK 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 DFS Furniture with a short position of Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFS Furniture and Cboe UK.
Diversification Opportunities for DFS Furniture and Cboe UK
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DFS and Cboe is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding DFS Furniture PLC and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer and DFS Furniture 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 DFS Furniture PLC are associated (or correlated) with Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of DFS Furniture i.e., DFS Furniture and Cboe UK go up and down completely randomly.
Pair Corralation between DFS Furniture and Cboe UK
Assuming the 90 days trading horizon DFS Furniture PLC is expected to generate 1.94 times more return on investment than Cboe UK. However, DFS Furniture is 1.94 times more volatile than Cboe UK Consumer. It trades about 0.16 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about 0.14 per unit of risk. If you would invest 12,100 in DFS Furniture PLC on September 26, 2024 and sell it today you would earn a total of 2,300 from holding DFS Furniture PLC or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
DFS Furniture PLC vs. Cboe UK Consumer
Performance |
| Timeline |
DFS Furniture and Cboe UK Volatility Contrast
Predicted Return Density |
| Returns |
DFS Furniture PLC
Pair trading matchups for DFS Furniture
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with DFS Furniture and Cboe UK
The main advantage of trading using opposite DFS Furniture and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFS Furniture position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.| DFS Furniture vs. UNIQA Insurance Group | DFS Furniture vs. Ameriprise Financial | DFS Furniture vs. Symphony Environmental Technologies | DFS Furniture vs. Cembra Money Bank |
| Cboe UK vs. alstria office REIT AG | Cboe UK vs. Infrastrutture Wireless Italiane | Cboe UK vs. MTI Wireless Edge | Cboe UK vs. DFS Furniture PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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