Correlation Between DAX Index and Altria
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Altria Group, you can compare the effects of market volatilities on DAX Index and Altria 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 Altria. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Altria.
Diversification Opportunities for DAX Index and Altria
Significant diversification
The 3 months correlation between DAX and Altria is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Altria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altria Group 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 Altria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altria Group has no effect on the direction of DAX Index i.e., DAX Index and Altria go up and down completely randomly.
Pair Corralation between DAX Index and Altria
Assuming the 90 days trading horizon DAX Index is expected to generate 7.71 times less return on investment than Altria. But when comparing it to its historical volatility, DAX Index is 1.85 times less risky than Altria. It trades about 0.06 of its potential returns per unit of risk. Altria Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,598 in Altria Group on August 26, 2024 and sell it today you would earn a total of 846.00 from holding Altria Group or generate 18.4% 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. Altria Group
Performance |
| Timeline |
DAX Index and Altria Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Altria Group
Pair trading matchups for Altria
Pair Trading with DAX Index and Altria
The main advantage of trading using opposite DAX Index and Altria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Altria 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 Altria will offset losses from the drop in Altria's long position.| DAX Index vs. Vishay Intertechnology | DAX Index vs. CHINA EDUCATION GROUP | DAX Index vs. Casio Computer CoLtd | DAX Index vs. Amkor Technology |
| Altria vs. Philip Morris International | Altria vs. British American Tobacco | Altria vs. British American Tobacco | Altria vs. British American Tobacco |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |