Correlation Between DAX Index and PARKWAY LIFE
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By analyzing existing cross correlation between DAX Index and PARKWAY LIFE REAL, you can compare the effects of market volatilities on DAX Index and PARKWAY LIFE 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 PARKWAY LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and PARKWAY LIFE.
Diversification Opportunities for DAX Index and PARKWAY LIFE
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between DAX and PARKWAY is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and PARKWAY LIFE REAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKWAY LIFE REAL 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 PARKWAY LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKWAY LIFE REAL has no effect on the direction of DAX Index i.e., DAX Index and PARKWAY LIFE go up and down completely randomly.
Pair Corralation between DAX Index and PARKWAY LIFE
Assuming the 90 days trading horizon DAX Index is expected to generate 0.45 times more return on investment than PARKWAY LIFE. However, DAX Index is 2.25 times less risky than PARKWAY LIFE. It trades about 0.08 of its potential returns per unit of risk. PARKWAY LIFE REAL is currently generating about 0.02 per unit of risk. If you would invest 1,444,761 in DAX Index on August 26, 2024 and sell it today you would earn a total of 487,498 from holding DAX Index or generate 33.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. PARKWAY LIFE REAL
Performance |
| Timeline |
DAX Index and PARKWAY LIFE Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
PARKWAY LIFE REAL
Pair trading matchups for PARKWAY LIFE
Pair Trading with DAX Index and PARKWAY LIFE
The main advantage of trading using opposite DAX Index and PARKWAY LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, PARKWAY LIFE 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 PARKWAY LIFE will offset losses from the drop in PARKWAY LIFE's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| PARKWAY LIFE vs. Welltower | PARKWAY LIFE vs. Sabra Health Care | PARKWAY LIFE vs. National Health Investors | PARKWAY LIFE vs. The GEO 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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