Correlation Between DAX Index and Medical Properties
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By analyzing existing cross correlation between DAX Index and Medical Properties Trust, you can compare the effects of market volatilities on DAX Index and Medical Properties 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 Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Medical Properties.
Diversification Opportunities for DAX Index and Medical Properties
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Medical is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust 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 Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of DAX Index i.e., DAX Index and Medical Properties go up and down completely randomly.
Pair Corralation between DAX Index and Medical Properties
Assuming the 90 days trading horizon DAX Index is expected to generate 0.27 times more return on investment than Medical Properties. However, DAX Index is 3.75 times less risky than Medical Properties. It trades about 0.15 of its potential returns per unit of risk. Medical Properties Trust is currently generating about -0.1 per unit of risk. If you would invest 1,871,149 in DAX Index on October 18, 2024 and sell it today you would earn a total of 186,319 from holding DAX Index or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Medical Properties Trust
Performance |
| Timeline |
DAX Index and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Medical Properties Trust
Pair trading matchups for Medical Properties
Pair Trading with DAX Index and Medical Properties
The main advantage of trading using opposite DAX Index and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Medical Properties 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 Medical Properties will offset losses from the drop in Medical Properties' long position.| DAX Index vs. CyberArk Software | DAX Index vs. Lendlease Group | DAX Index vs. PSI Software AG | DAX Index vs. Take Two Interactive Software |
| Medical Properties vs. Apple Inc | Medical Properties vs. Apple Inc | Medical Properties vs. Apple Inc | Medical Properties vs. Apple Inc |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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