Correlation Between DAX Index and INVITATION HOMES
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By analyzing existing cross correlation between DAX Index and INVITATION HOMES DL, you can compare the effects of market volatilities on DAX Index and INVITATION HOMES 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 INVITATION HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and INVITATION HOMES.
Diversification Opportunities for DAX Index and INVITATION HOMES
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and INVITATION is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and INVITATION HOMES DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INVITATION HOMES 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 INVITATION HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INVITATION HOMES has no effect on the direction of DAX Index i.e., DAX Index and INVITATION HOMES go up and down completely randomly.
Pair Corralation between DAX Index and INVITATION HOMES
Assuming the 90 days trading horizon DAX Index is expected to generate 0.56 times more return on investment than INVITATION HOMES. However, DAX Index is 1.78 times less risky than INVITATION HOMES. It trades about 0.08 of its potential returns per unit of risk. INVITATION HOMES DL is currently generating about 0.02 per unit of risk. If you would invest 1,444,761 in DAX Index on August 25, 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 Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. INVITATION HOMES DL
Performance |
| Timeline |
DAX Index and INVITATION HOMES Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
INVITATION HOMES DL
Pair trading matchups for INVITATION HOMES
Pair Trading with DAX Index and INVITATION HOMES
The main advantage of trading using opposite DAX Index and INVITATION HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, INVITATION HOMES 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 INVITATION HOMES will offset losses from the drop in INVITATION HOMES'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 |
| INVITATION HOMES vs. Fast Retailing Co | INVITATION HOMES vs. Verizon Communications | INVITATION HOMES vs. Iridium Communications | INVITATION HOMES vs. China Communications Services |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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