Correlation Between DAX Index and General Mills
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By analyzing existing cross correlation between DAX Index and General Mills, you can compare the effects of market volatilities on DAX Index and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and General Mills.
Diversification Opportunities for DAX Index and General Mills
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and General is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of DAX Index i.e., DAX Index and General Mills go up and down completely randomly.
Pair Corralation between DAX Index and General Mills
Assuming the 90 days trading horizon DAX Index is expected to generate 0.64 times more return on investment than General Mills. However, DAX Index is 1.56 times less risky than General Mills. It trades about 0.08 of its potential returns per unit of risk. General Mills is currently generating about -0.03 per unit of risk. If you would invest 1,426,456 in DAX Index on August 29, 2024 and sell it today you would earn a total of 499,719 from holding DAX Index or generate 35.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. General Mills
Performance |
| Timeline |
DAX Index and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
General Mills
Pair trading matchups for General Mills
Pair Trading with DAX Index and General Mills
The main advantage of trading using opposite DAX Index and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| General Mills vs. Superior Plus Corp | General Mills vs. SIVERS SEMICONDUCTORS AB | General Mills vs. Talanx AG | General Mills vs. 2G ENERGY |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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