Correlation Between DAX Index and Garofalo Health
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By analyzing existing cross correlation between DAX Index and Garofalo Health Care, you can compare the effects of market volatilities on DAX Index and Garofalo Health 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 Garofalo Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Garofalo Health.
Diversification Opportunities for DAX Index and Garofalo Health
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Garofalo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Garofalo Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garofalo Health Care 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 Garofalo Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garofalo Health Care has no effect on the direction of DAX Index i.e., DAX Index and Garofalo Health go up and down completely randomly.
Pair Corralation between DAX Index and Garofalo Health
Assuming the 90 days trading horizon DAX Index is expected to generate 0.47 times more return on investment than Garofalo Health. However, DAX Index is 2.15 times less risky than Garofalo Health. It trades about -0.03 of its potential returns per unit of risk. Garofalo Health Care is currently generating about -0.12 per unit of risk. If you would invest 2,039,916 in DAX Index on October 12, 2024 and sell it today you would lose (8,206) from holding DAX Index or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Garofalo Health Care
Performance |
| Timeline |
DAX Index and Garofalo Health Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Garofalo Health Care
Pair trading matchups for Garofalo Health
Pair Trading with DAX Index and Garofalo Health
The main advantage of trading using opposite DAX Index and Garofalo Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Garofalo Health 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 Garofalo Health will offset losses from the drop in Garofalo Health's long position.| DAX Index vs. Scottish Mortgage Investment | DAX Index vs. Keck Seng Investments | DAX Index vs. Lendlease Group | DAX Index vs. FIRST SAVINGS FINL |
| Garofalo Health vs. Japan Tobacco | Garofalo Health vs. CHINA EDUCATION GROUP | Garofalo Health vs. betterU Education Corp | Garofalo Health vs. Strategic Education |
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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