Correlation Between DAX Index and CBRE Group
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By analyzing existing cross correlation between DAX Index and CBRE Group Class, you can compare the effects of market volatilities on DAX Index and CBRE 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 CBRE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and CBRE Group.
Diversification Opportunities for DAX Index and CBRE Group
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and CBRE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and CBRE Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBRE Group Class 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 CBRE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBRE Group Class has no effect on the direction of DAX Index i.e., DAX Index and CBRE Group go up and down completely randomly.
Pair Corralation between DAX Index and CBRE Group
Assuming the 90 days trading horizon DAX Index is expected to generate 3.13 times less return on investment than CBRE Group. But when comparing it to its historical volatility, DAX Index is 2.2 times less risky than CBRE Group. It trades about 0.14 of its potential returns per unit of risk. CBRE Group Class is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 12,100 in CBRE Group Class on September 1, 2024 and sell it today you would earn a total of 1,100 from holding CBRE Group Class or generate 9.09% 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. CBRE Group Class
Performance |
| Timeline |
DAX Index and CBRE Group Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
CBRE Group Class
Pair trading matchups for CBRE Group
Pair Trading with DAX Index and CBRE Group
The main advantage of trading using opposite DAX Index and CBRE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, CBRE 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 CBRE Group will offset losses from the drop in CBRE Group's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| CBRE Group vs. RETAIL FOOD GROUP | CBRE Group vs. VARIOUS EATERIES LS | CBRE Group vs. ePlay Digital | CBRE Group vs. AIR PRODCHEMICALS |
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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