Correlation Between DAX Index and Grupo Aeroportuario
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By analyzing existing cross correlation between DAX Index and Grupo Aeroportuario del, you can compare the effects of market volatilities on DAX Index and Grupo Aeroportuario 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 Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Grupo Aeroportuario.
Diversification Opportunities for DAX Index and Grupo Aeroportuario
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Grupo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del 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 Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of DAX Index i.e., DAX Index and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between DAX Index and Grupo Aeroportuario
Assuming the 90 days trading horizon DAX Index is expected to generate 1.34 times less return on investment than Grupo Aeroportuario. But when comparing it to its historical volatility, DAX Index is 3.29 times less risky than Grupo Aeroportuario. It trades about 0.1 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,778 in Grupo Aeroportuario del on September 12, 2024 and sell it today you would earn a total of 5,422 from holding Grupo Aeroportuario del or generate 42.43% 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. Grupo Aeroportuario del
Performance |
| Timeline |
DAX Index and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Grupo Aeroportuario del
Pair trading matchups for Grupo Aeroportuario
Pair Trading with DAX Index and Grupo Aeroportuario
The main advantage of trading using opposite DAX Index and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Grupo Aeroportuario 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 Grupo Aeroportuario will offset losses from the drop in Grupo Aeroportuario's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| Grupo Aeroportuario vs. Aena SME SA | Grupo Aeroportuario vs. Superior Plus Corp | Grupo Aeroportuario vs. SIVERS SEMICONDUCTORS AB | Grupo Aeroportuario vs. Norsk Hydro ASA |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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