Correlation Between DAX Index and LIFE SCIREIT
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By analyzing existing cross correlation between DAX Index and LIFE SCIREIT PLC, you can compare the effects of market volatilities on DAX Index and LIFE SCIREIT 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 LIFE SCIREIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and LIFE SCIREIT.
Diversification Opportunities for DAX Index and LIFE SCIREIT
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and LIFE is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and LIFE SCIREIT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFE SCIREIT 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 LIFE SCIREIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFE SCIREIT PLC has no effect on the direction of DAX Index i.e., DAX Index and LIFE SCIREIT go up and down completely randomly.
Pair Corralation between DAX Index and LIFE SCIREIT
Assuming the 90 days trading horizon DAX Index is expected to generate 0.2 times more return on investment than LIFE SCIREIT. However, DAX Index is 4.89 times less risky than LIFE SCIREIT. It trades about 0.53 of its potential returns per unit of risk. LIFE SCIREIT PLC is currently generating about -0.21 per unit of risk. If you would invest 1,900,311 in DAX Index on September 14, 2024 and sell it today you would earn a total of 142,316 from holding DAX Index or generate 7.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. LIFE SCIREIT PLC
Performance |
| Timeline |
DAX Index and LIFE SCIREIT Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
LIFE SCIREIT PLC
Pair trading matchups for LIFE SCIREIT
Pair Trading with DAX Index and LIFE SCIREIT
The main advantage of trading using opposite DAX Index and LIFE SCIREIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, LIFE SCIREIT 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 LIFE SCIREIT will offset losses from the drop in LIFE SCIREIT's long position.| DAX Index vs. CARSALESCOM | DAX Index vs. Sumitomo Mitsui Construction | DAX Index vs. H FARM SPA | DAX Index vs. Nufarm Limited |
| LIFE SCIREIT vs. Playtech plc | LIFE SCIREIT vs. Uber Technologies | LIFE SCIREIT vs. ORMAT TECHNOLOGIES | LIFE SCIREIT vs. AAC TECHNOLOGHLDGADR |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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