Correlation Between DAX Index and REPUBLIC BANK
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By analyzing existing cross correlation between DAX Index and REPUBLIC BANK LIMITED, you can compare the effects of market volatilities on DAX Index and REPUBLIC BANK 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 REPUBLIC BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and REPUBLIC BANK.
Diversification Opportunities for DAX Index and REPUBLIC BANK
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and REPUBLIC is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and REPUBLIC BANK LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REPUBLIC BANK LIMITED 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 REPUBLIC BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REPUBLIC BANK LIMITED has no effect on the direction of DAX Index i.e., DAX Index and REPUBLIC BANK go up and down completely randomly.
Pair Corralation between DAX Index and REPUBLIC BANK
Assuming the 90 days trading horizon DAX Index is expected to generate 1.07 times less return on investment than REPUBLIC BANK. But when comparing it to its historical volatility, DAX Index is 1.27 times less risky than REPUBLIC BANK. It trades about 0.07 of its potential returns per unit of risk. REPUBLIC BANK LIMITED is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 54.00 in REPUBLIC BANK LIMITED on August 31, 2024 and sell it today you would earn a total of 12.00 from holding REPUBLIC BANK LIMITED or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.76% |
| Values | Daily Returns |
DAX Index vs. REPUBLIC BANK LIMITED
Performance |
| Timeline |
DAX Index and REPUBLIC BANK Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
REPUBLIC BANK LIMITED
Pair trading matchups for REPUBLIC BANK
Pair Trading with DAX Index and REPUBLIC BANK
The main advantage of trading using opposite DAX Index and REPUBLIC BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, REPUBLIC BANK 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 REPUBLIC BANK will offset losses from the drop in REPUBLIC BANK's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| REPUBLIC BANK vs. ECOBANK GHANA LIMITED | REPUBLIC BANK vs. DIGICUT ADVERTISING PRODUCTION | REPUBLIC BANK vs. AGRICULTURAL DEVELOPMENT BANK | REPUBLIC BANK vs. CAMELOT GHANA LTD |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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