Correlation Between DAX Index and Ontex Group
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By analyzing existing cross correlation between DAX Index and Ontex Group NV, you can compare the effects of market volatilities on DAX Index and Ontex Group 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 Ontex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Ontex Group.
Diversification Opportunities for DAX Index and Ontex Group
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Ontex is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Ontex Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontex Group NV 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 Ontex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontex Group NV has no effect on the direction of DAX Index i.e., DAX Index and Ontex Group go up and down completely randomly.
Pair Corralation between DAX Index and Ontex Group
Assuming the 90 days trading horizon DAX Index is expected to generate 0.53 times more return on investment than Ontex Group. However, DAX Index is 1.9 times less risky than Ontex Group. It trades about 0.33 of its potential returns per unit of risk. Ontex Group NV is currently generating about 0.05 per unit of risk. If you would invest 2,128,218 in DAX Index on November 28, 2024 and sell it today you would earn a total of 151,193 from holding DAX Index or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Ontex Group NV
Performance |
| Timeline |
DAX Index and Ontex Group Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Ontex Group NV
Pair trading matchups for Ontex Group
Pair Trading with DAX Index and Ontex Group
The main advantage of trading using opposite DAX Index and Ontex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Ontex Group 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 Ontex Group will offset losses from the drop in Ontex Group's long position.| DAX Index vs. TRAVEL LEISURE DL 01 | DAX Index vs. COLUMBIA SPORTSWEAR | DAX Index vs. InPlay Oil Corp | DAX Index vs. MAVEN WIRELESS SWEDEN |
| Ontex Group vs. Axfood AB | Ontex Group vs. JAPAN AIRLINES | Ontex Group vs. United Natural Foods | Ontex Group vs. Southwest Airlines Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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