Correlation Between DAX Index and GEO
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and The GEO Group, you can compare the effects of market volatilities on DAX Index and GEO 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 GEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and GEO.
Diversification Opportunities for DAX Index and GEO
Weak diversification
The 3 months correlation between DAX and GEO is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and The GEO Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEO 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 GEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEO Group has no effect on the direction of DAX Index i.e., DAX Index and GEO go up and down completely randomly.
Pair Corralation between DAX Index and GEO
Assuming the 90 days trading horizon DAX Index is expected to under-perform the GEO. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 9.72 times less risky than GEO. The index trades about 0.0 of its potential returns per unit of risk. The The GEO Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,154 in The GEO Group on August 29, 2024 and sell it today you would earn a total of 1,483 from holding The GEO Group or generate 128.51% 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. The GEO Group
Performance |
| Timeline |
DAX Index and GEO Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
The GEO Group
Pair trading matchups for GEO
Pair Trading with DAX Index and GEO
The main advantage of trading using opposite DAX Index and GEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, GEO 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 GEO will offset losses from the drop in GEO's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| GEO vs. Sabra Health Care | GEO vs. Superior Plus Corp | GEO vs. NMI Holdings | GEO 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |