Correlation Between DAX Index and Avis Budget
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By analyzing existing cross correlation between DAX Index and Avis Budget Group, you can compare the effects of market volatilities on DAX Index and Avis Budget 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 Avis Budget. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Avis Budget.
Diversification Opportunities for DAX Index and Avis Budget
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Avis is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Avis Budget Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avis Budget 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 Avis Budget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avis Budget Group has no effect on the direction of DAX Index i.e., DAX Index and Avis Budget go up and down completely randomly.
Pair Corralation between DAX Index and Avis Budget
Assuming the 90 days trading horizon DAX Index is expected to generate 0.2 times more return on investment than Avis Budget. However, DAX Index is 4.9 times less risky than Avis Budget. It trades about 0.09 of its potential returns per unit of risk. Avis Budget Group is currently generating about -0.03 per unit of risk. If you would invest 1,662,899 in DAX Index on September 2, 2024 and sell it today you would earn a total of 299,746 from holding DAX Index or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Avis Budget Group
Performance |
| Timeline |
DAX Index and Avis Budget Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Avis Budget Group
Pair trading matchups for Avis Budget
Pair Trading with DAX Index and Avis Budget
The main advantage of trading using opposite DAX Index and Avis Budget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Avis Budget 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 Avis Budget will offset losses from the drop in Avis Budget's long position.| DAX Index vs. FEMALE HEALTH | DAX Index vs. CDN IMPERIAL BANK | DAX Index vs. Webster Financial | DAX Index vs. Cardinal Health |
| Avis Budget vs. BOS BETTER ONLINE | Avis Budget vs. KIMBALL ELECTRONICS | Avis Budget vs. LG Electronics | Avis Budget vs. LPKF Laser Electronics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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