Correlation Between DAX Index and GB Group
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By analyzing existing cross correlation between DAX Index and GB Group plc, you can compare the effects of market volatilities on DAX Index and GB Group 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 GB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and GB Group.
Diversification Opportunities for DAX Index and GB Group
Very weak diversification
The 3 months correlation between DAX and 0GB is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and GB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GB Group plc 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 GB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GB Group plc has no effect on the direction of DAX Index i.e., DAX Index and GB Group go up and down completely randomly.
Pair Corralation between DAX Index and GB Group
Assuming the 90 days trading horizon DAX Index is expected to generate 0.46 times more return on investment than GB Group. However, DAX Index is 2.19 times less risky than GB Group. It trades about 0.0 of its potential returns per unit of risk. GB Group plc is currently generating about -0.36 per unit of risk. If you would invest 2,034,596 in DAX Index on October 10, 2024 and sell it today you would lose (539.00) from holding DAX Index or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. GB Group plc
Performance |
| Timeline |
DAX Index and GB Group Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
GB Group plc
Pair trading matchups for GB Group
Pair Trading with DAX Index and GB Group
The main advantage of trading using opposite DAX Index and GB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, GB Group 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 GB Group will offset losses from the drop in GB Group's long position.| DAX Index vs. Meli Hotels International | DAX Index vs. DALATA HOTEL | DAX Index vs. BRAEMAR HOTELS RES | DAX Index vs. Hyatt Hotels |
| GB Group vs. Scottish Mortgage Investment | GB Group vs. Thai Beverage Public | GB Group vs. Gladstone Investment | GB Group vs. Performance Food Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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