Correlation Between DAX Index and Gentex
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Gentex, you can compare the effects of market volatilities on DAX Index and Gentex 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 Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Gentex.
Diversification Opportunities for DAX Index and Gentex
Very weak diversification
The 3 months correlation between DAX and Gentex is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex 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 Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of DAX Index i.e., DAX Index and Gentex go up and down completely randomly.
Pair Corralation between DAX Index and Gentex
Assuming the 90 days trading horizon DAX Index is expected to generate 0.57 times more return on investment than Gentex. However, DAX Index is 1.75 times less risky than Gentex. It trades about 0.09 of its potential returns per unit of risk. Gentex is currently generating about 0.03 per unit of risk. If you would invest 1,406,926 in DAX Index on September 23, 2024 and sell it today you would earn a total of 581,549 from holding DAX Index or generate 41.33% 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. Gentex
Performance |
| Timeline |
DAX Index and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Gentex
Pair trading matchups for Gentex
Pair Trading with DAX Index and Gentex
The main advantage of trading using opposite DAX Index and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex's long position.| DAX Index vs. alstria office REIT AG | DAX Index vs. OFFICE DEPOT | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. MAVEN WIRELESS SWEDEN |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |