Correlation Between DAX Index and ITV Plc
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By analyzing existing cross correlation between DAX Index and ITV plc, you can compare the effects of market volatilities on DAX Index and ITV Plc 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 ITV Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and ITV Plc.
Diversification Opportunities for DAX Index and ITV Plc
Good diversification
The 3 months correlation between DAX and ITV is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and ITV plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITV plc 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 ITV Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITV plc has no effect on the direction of DAX Index i.e., DAX Index and ITV Plc go up and down completely randomly.
Pair Corralation between DAX Index and ITV Plc
Assuming the 90 days trading horizon DAX Index is expected to generate 1.22 times less return on investment than ITV Plc. But when comparing it to its historical volatility, DAX Index is 3.64 times less risky than ITV Plc. It trades about 0.11 of its potential returns per unit of risk. ITV plc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 72.00 in ITV plc on September 12, 2024 and sell it today you would earn a total of 17.00 from holding ITV plc or generate 23.61% 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. ITV plc
Performance |
| Timeline |
DAX Index and ITV Plc Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
ITV plc
Pair trading matchups for ITV Plc
Pair Trading with DAX Index and ITV Plc
The main advantage of trading using opposite DAX Index and ITV Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, ITV Plc 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 ITV Plc will offset losses from the drop in ITV Plc's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| ITV Plc vs. ALBIS LEASING AG | ITV Plc vs. YATRA ONLINE DL 0001 | ITV Plc vs. Gruppo Mutuionline SpA | ITV Plc vs. GungHo Online Entertainment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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