Correlation Between DAX Index and Bechtle AG
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By analyzing existing cross correlation between DAX Index and Bechtle AG, you can compare the effects of market volatilities on DAX Index and Bechtle AG 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 Bechtle AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Bechtle AG.
Diversification Opportunities for DAX Index and Bechtle AG
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Bechtle is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Bechtle AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bechtle AG 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 Bechtle AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bechtle AG has no effect on the direction of DAX Index i.e., DAX Index and Bechtle AG go up and down completely randomly.
Pair Corralation between DAX Index and Bechtle AG
Assuming the 90 days trading horizon DAX Index is expected to generate 0.47 times more return on investment than Bechtle AG. However, DAX Index is 2.13 times less risky than Bechtle AG. It trades about 0.18 of its potential returns per unit of risk. Bechtle AG is currently generating about 0.08 per unit of risk. If you would invest 2,172,720 in DAX Index on December 1, 2024 and sell it today you would earn a total of 82,423 from holding DAX Index or generate 3.79% 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. Bechtle AG
Performance |
| Timeline |
DAX Index and Bechtle AG Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Bechtle AG
Pair trading matchups for Bechtle AG
Pair Trading with DAX Index and Bechtle AG
The main advantage of trading using opposite DAX Index and Bechtle AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Bechtle AG 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 Bechtle AG will offset losses from the drop in Bechtle AG's long position.| DAX Index vs. Phibro Animal Health | DAX Index vs. Cardinal Health | DAX Index vs. Siemens Healthineers AG | DAX Index vs. CARDINAL HEALTH |
| Bechtle AG vs. Gaming and Leisure | Bechtle AG vs. ANTA Sports Products | Bechtle AG vs. GUILD ESPORTS PLC | Bechtle AG vs. InPlay Oil Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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