Correlation Between DAX Index and Richter Gedeon
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By analyzing existing cross correlation between DAX Index and Richter Gedeon Vegyszeti, you can compare the effects of market volatilities on DAX Index and Richter Gedeon 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 Richter Gedeon. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Richter Gedeon.
Diversification Opportunities for DAX Index and Richter Gedeon
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Richter is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Richter Gedeon Vegyszeti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richter Gedeon Vegyszeti 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 Richter Gedeon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richter Gedeon Vegyszeti has no effect on the direction of DAX Index i.e., DAX Index and Richter Gedeon go up and down completely randomly.
Pair Corralation between DAX Index and Richter Gedeon
Assuming the 90 days trading horizon DAX Index is expected to generate 0.36 times more return on investment than Richter Gedeon. However, DAX Index is 2.79 times less risky than Richter Gedeon. It trades about 0.13 of its potential returns per unit of risk. Richter Gedeon Vegyszeti is currently generating about 0.03 per unit of risk. If you would invest 1,513,597 in DAX Index on September 1, 2024 and sell it today you would earn a total of 449,048 from holding DAX Index or generate 29.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
DAX Index vs. Richter Gedeon Vegyszeti
Performance |
| Timeline |
DAX Index and Richter Gedeon Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Richter Gedeon Vegyszeti
Pair trading matchups for Richter Gedeon
Pair Trading with DAX Index and Richter Gedeon
The main advantage of trading using opposite DAX Index and Richter Gedeon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Richter Gedeon 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 Richter Gedeon will offset losses from the drop in Richter Gedeon'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 |
| Richter Gedeon vs. Eisai Co | Richter Gedeon vs. Shionogi Co | Richter Gedeon vs. Superior Plus Corp | Richter Gedeon vs. Origin Agritech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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