Correlation Between DAX Index and BLANTYRE HOTELS
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By analyzing existing cross correlation between DAX Index and BLANTYRE HOTELS LIMITED, you can compare the effects of market volatilities on DAX Index and BLANTYRE HOTELS 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 BLANTYRE HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and BLANTYRE HOTELS.
Diversification Opportunities for DAX Index and BLANTYRE HOTELS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and BLANTYRE is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and BLANTYRE HOTELS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLANTYRE HOTELS 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 BLANTYRE HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLANTYRE HOTELS has no effect on the direction of DAX Index i.e., DAX Index and BLANTYRE HOTELS go up and down completely randomly.
Pair Corralation between DAX Index and BLANTYRE HOTELS
Assuming the 90 days trading horizon DAX Index is expected to generate 2.94 times less return on investment than BLANTYRE HOTELS. In addition to that, DAX Index is 1.03 times more volatile than BLANTYRE HOTELS LIMITED. It trades about 0.07 of its total potential returns per unit of risk. BLANTYRE HOTELS LIMITED is currently generating about 0.21 per unit of volatility. If you would invest 1,305 in BLANTYRE HOTELS LIMITED on September 2, 2024 and sell it today you would earn a total of 150.00 from holding BLANTYRE HOTELS LIMITED or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.48% |
| Values | Daily Returns |
DAX Index vs. BLANTYRE HOTELS LIMITED
Performance |
| Timeline |
DAX Index and BLANTYRE HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
BLANTYRE HOTELS LIMITED
Pair trading matchups for BLANTYRE HOTELS
Pair Trading with DAX Index and BLANTYRE HOTELS
The main advantage of trading using opposite DAX Index and BLANTYRE HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, BLANTYRE HOTELS 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 BLANTYRE HOTELS will offset losses from the drop in BLANTYRE HOTELS's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
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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