Correlation Between DAX Index and PPHE HOTEL
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By analyzing existing cross correlation between DAX Index and PPHE HOTEL GROUP, you can compare the effects of market volatilities on DAX Index and PPHE HOTEL 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 PPHE HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PPHE HOTEL.
Diversification Opportunities for DAX Index and PPHE HOTEL
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and PPHE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PPHE HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE HOTEL GROUP 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 PPHE HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE HOTEL GROUP has no effect on the direction of DAX Index i.e., DAX Index and PPHE HOTEL go up and down completely randomly.
Pair Corralation between DAX Index and PPHE HOTEL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.45 times more return on investment than PPHE HOTEL. However, DAX Index is 2.24 times less risky than PPHE HOTEL. It trades about 0.08 of its potential returns per unit of risk. PPHE HOTEL GROUP is currently generating about 0.02 per unit of risk. If you would invest 1,430,663 in DAX Index on August 31, 2024 and sell it today you would earn a total of 511,910 from holding DAX Index or generate 35.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. PPHE HOTEL GROUP
Performance |
| Timeline |
DAX Index and PPHE HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
PPHE HOTEL GROUP
Pair trading matchups for PPHE HOTEL
Pair Trading with DAX Index and PPHE HOTEL
The main advantage of trading using opposite DAX Index and PPHE HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PPHE HOTEL 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 PPHE HOTEL will offset losses from the drop in PPHE HOTEL's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| PPHE HOTEL vs. Transport International Holdings | PPHE HOTEL vs. SPORT LISBOA E | PPHE HOTEL vs. Haverty Furniture Companies | PPHE HOTEL vs. Neinor Homes SA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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