Correlation Between DAX Index and Hilton Worldwide
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By analyzing existing cross correlation between DAX Index and Hilton Worldwide Holdings, you can compare the effects of market volatilities on DAX Index and Hilton Worldwide 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 Hilton Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Hilton Worldwide.
Diversification Opportunities for DAX Index and Hilton Worldwide
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Hilton is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Hilton Worldwide Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Worldwide Holdings 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 Hilton Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Worldwide Holdings has no effect on the direction of DAX Index i.e., DAX Index and Hilton Worldwide go up and down completely randomly.
Pair Corralation between DAX Index and Hilton Worldwide
Assuming the 90 days trading horizon DAX Index is expected to generate 0.56 times more return on investment than Hilton Worldwide. However, DAX Index is 1.8 times less risky than Hilton Worldwide. It trades about 0.36 of its potential returns per unit of risk. Hilton Worldwide Holdings is currently generating about 0.1 per unit of risk. If you would invest 1,990,914 in DAX Index on November 30, 2024 and sell it today you would earn a total of 264,229 from holding DAX Index or generate 13.27% 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. Hilton Worldwide Holdings
Performance |
| Timeline |
DAX Index and Hilton Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Hilton Worldwide Holdings
Pair trading matchups for Hilton Worldwide
Pair Trading with DAX Index and Hilton Worldwide
The main advantage of trading using opposite DAX Index and Hilton Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Hilton Worldwide 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 Hilton Worldwide will offset losses from the drop in Hilton Worldwide's long position.| DAX Index vs. Phibro Animal Health | DAX Index vs. Cardinal Health | DAX Index vs. Siemens Healthineers AG | DAX Index vs. CARDINAL HEALTH |
| Hilton Worldwide vs. Molina Healthcare | Hilton Worldwide vs. SOGECLAIR SA INH | Hilton Worldwide vs. Altair Engineering | Hilton Worldwide vs. Alaska Air Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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