Correlation Between DAX Index and Dillards
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By analyzing existing cross correlation between DAX Index and Dillards, you can compare the effects of market volatilities on DAX Index and Dillards 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 Dillards. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Dillards.
Diversification Opportunities for DAX Index and Dillards
Very weak diversification
The 3 months correlation between DAX and Dillards is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Dillards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dillards 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 Dillards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dillards has no effect on the direction of DAX Index i.e., DAX Index and Dillards go up and down completely randomly.
Pair Corralation between DAX Index and Dillards
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Dillards. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 3.5 times less risky than Dillards. The index trades about -0.03 of its potential returns per unit of risk. The Dillards is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 35,000 in Dillards on August 28, 2024 and sell it today you would earn a total of 7,800 from holding Dillards or generate 22.29% 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. Dillards
Performance |
| Timeline |
DAX Index and Dillards Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Dillards
Pair trading matchups for Dillards
Pair Trading with DAX Index and Dillards
The main advantage of trading using opposite DAX Index and Dillards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Dillards 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 Dillards will offset losses from the drop in Dillards' long position.| DAX Index vs. QUEEN S ROAD | DAX Index vs. TITANIUM TRANSPORTGROUP | DAX Index vs. COPLAND ROAD CAPITAL | DAX Index vs. Broadcom |
| Dillards vs. COSTCO WHOLESALE CDR | Dillards vs. Retail Estates NV | Dillards vs. Chesapeake Utilities | Dillards vs. Lamar Advertising |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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