Correlation Between DAX Index and Equity LifeStyle
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By analyzing existing cross correlation between DAX Index and Equity LifeStyle Properties, you can compare the effects of market volatilities on DAX Index and Equity LifeStyle 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 Equity LifeStyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Equity LifeStyle.
Diversification Opportunities for DAX Index and Equity LifeStyle
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Equity is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Equity LifeStyle Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity LifeStyle Pro 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 Equity LifeStyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity LifeStyle Pro has no effect on the direction of DAX Index i.e., DAX Index and Equity LifeStyle go up and down completely randomly.
Pair Corralation between DAX Index and Equity LifeStyle
Assuming the 90 days trading horizon DAX Index is expected to generate 1.28 times more return on investment than Equity LifeStyle. However, DAX Index is 1.28 times more volatile than Equity LifeStyle Properties. It trades about 0.09 of its potential returns per unit of risk. Equity LifeStyle Properties is currently generating about -0.19 per unit of risk. If you would invest 2,203,783 in DAX Index on December 13, 2024 and sell it today you would earn a total of 63,858 from holding DAX Index or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Equity LifeStyle Properties
Performance |
| Timeline |
DAX Index and Equity LifeStyle Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Equity LifeStyle Properties
Pair trading matchups for Equity LifeStyle
Pair Trading with DAX Index and Equity LifeStyle
The main advantage of trading using opposite DAX Index and Equity LifeStyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Equity LifeStyle 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 Equity LifeStyle will offset losses from the drop in Equity LifeStyle's long position.| DAX Index vs. SALESFORCE INC CDR | DAX Index vs. Bausch Health Companies | DAX Index vs. Gruppo Mutuionline SpA | DAX Index vs. EPSILON HEALTHCARE LTD |
| Equity LifeStyle vs. Fortescue Metals Group | Equity LifeStyle vs. Air Transport Services | Equity LifeStyle vs. AEON METALS LTD | Equity LifeStyle vs. Harmony Gold Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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