Correlation Between DAX Index and Xenia Hotels
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By analyzing existing cross correlation between DAX Index and Xenia Hotels Resorts, you can compare the effects of market volatilities on DAX Index and Xenia Hotels 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 Xenia Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Xenia Hotels.
Diversification Opportunities for DAX Index and Xenia Hotels
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Xenia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Xenia Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenia Hotels Resorts 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 Xenia Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenia Hotels Resorts has no effect on the direction of DAX Index i.e., DAX Index and Xenia Hotels go up and down completely randomly.
Pair Corralation between DAX Index and Xenia Hotels
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Xenia Hotels. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 2.69 times less risky than Xenia Hotels. The index trades about -0.05 of its potential returns per unit of risk. The Xenia Hotels Resorts is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,330 in Xenia Hotels Resorts on August 29, 2024 and sell it today you would earn a total of 150.00 from holding Xenia Hotels Resorts or generate 11.28% 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. Xenia Hotels Resorts
Performance |
| Timeline |
DAX Index and Xenia Hotels Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Xenia Hotels Resorts
Pair trading matchups for Xenia Hotels
Pair Trading with DAX Index and Xenia Hotels
The main advantage of trading using opposite DAX Index and Xenia Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Xenia Hotels 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 Xenia Hotels will offset losses from the drop in Xenia Hotels' long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| Xenia Hotels vs. Lamar Advertising | Xenia Hotels vs. PTT Global Chemical | Xenia Hotels vs. Mitsubishi Gas Chemical | Xenia Hotels vs. YATRA ONLINE DL 0001 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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