Correlation Between DAX Index and Churchill Downs
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By analyzing existing cross correlation between DAX Index and Churchill Downs Incorporated, you can compare the effects of market volatilities on DAX Index and Churchill Downs 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 Churchill Downs. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Churchill Downs.
Diversification Opportunities for DAX Index and Churchill Downs
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DAX and Churchill is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Churchill Downs Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Churchill Downs 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 Churchill Downs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Churchill Downs has no effect on the direction of DAX Index i.e., DAX Index and Churchill Downs go up and down completely randomly.
Pair Corralation between DAX Index and Churchill Downs
Assuming the 90 days trading horizon DAX Index is expected to generate 0.47 times more return on investment than Churchill Downs. However, DAX Index is 2.13 times less risky than Churchill Downs. It trades about 0.11 of its potential returns per unit of risk. Churchill Downs Incorporated is currently generating about 0.04 per unit of risk. If you would invest 1,560,328 in DAX Index on September 12, 2024 and sell it today you would earn a total of 472,588 from holding DAX Index or generate 30.29% 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. Churchill Downs Incorporated
Performance |
| Timeline |
DAX Index and Churchill Downs Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Churchill Downs Incorporated
Pair trading matchups for Churchill Downs
Pair Trading with DAX Index and Churchill Downs
The main advantage of trading using opposite DAX Index and Churchill Downs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Churchill Downs 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 Churchill Downs will offset losses from the drop in Churchill Downs' long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Churchill Downs vs. Scientific Games | Churchill Downs vs. International Game Technology | Churchill Downs vs. Superior Plus Corp | Churchill Downs vs. SIVERS SEMICONDUCTORS AB |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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