Correlation Between DAX Index and Macquarie Group
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By analyzing existing cross correlation between DAX Index and Macquarie Group Limited, you can compare the effects of market volatilities on DAX Index and Macquarie 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 Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Macquarie Group.
Diversification Opportunities for DAX Index and Macquarie Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Macquarie is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Macquarie Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie 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 Macquarie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of DAX Index i.e., DAX Index and Macquarie Group go up and down completely randomly.
Pair Corralation between DAX Index and Macquarie Group
Assuming the 90 days trading horizon DAX Index is expected to generate 1.15 times less return on investment than Macquarie Group. But when comparing it to its historical volatility, DAX Index is 2.08 times less risky than Macquarie Group. It trades about 0.1 of its potential returns per unit of risk. Macquarie Group Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,659 in Macquarie Group Limited on November 27, 2024 and sell it today you would earn a total of 4,331 from holding Macquarie Group Limited or generate 44.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Macquarie Group Limited
Performance |
| Timeline |
DAX Index and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Macquarie Group Limited
Pair trading matchups for Macquarie Group
Pair Trading with DAX Index and Macquarie Group
The main advantage of trading using opposite DAX Index and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Macquarie 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 Macquarie Group will offset losses from the drop in Macquarie Group's long position.| DAX Index vs. CAIRN HOMES EO | DAX Index vs. Hisense Home Appliances | DAX Index vs. STRAYER EDUCATION | DAX Index vs. CHINA EDUCATION GROUP |
| Macquarie Group vs. KENEDIX OFFICE INV | Macquarie Group vs. Tradeweb Markets | Macquarie Group vs. National Retail Properties | Macquarie Group vs. LEONS FURNITURE |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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