Correlation Between DAX Index and REGIONS FINANCIAL
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By analyzing existing cross correlation between DAX Index and REGIONS FINANCIAL PFD, you can compare the effects of market volatilities on DAX Index and REGIONS FINANCIAL 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 REGIONS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and REGIONS FINANCIAL.
Diversification Opportunities for DAX Index and REGIONS FINANCIAL
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and REGIONS is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and REGIONS FINANCIAL PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REGIONS FINANCIAL PFD 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 REGIONS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REGIONS FINANCIAL PFD has no effect on the direction of DAX Index i.e., DAX Index and REGIONS FINANCIAL go up and down completely randomly.
Pair Corralation between DAX Index and REGIONS FINANCIAL
Assuming the 90 days trading horizon DAX Index is expected to generate 4.04 times less return on investment than REGIONS FINANCIAL. But when comparing it to its historical volatility, DAX Index is 1.32 times less risky than REGIONS FINANCIAL. It trades about 0.04 of its potential returns per unit of risk. REGIONS FINANCIAL PFD is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,546 in REGIONS FINANCIAL PFD on August 29, 2024 and sell it today you would earn a total of 294.00 from holding REGIONS FINANCIAL PFD or generate 19.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. REGIONS FINANCIAL PFD
Performance |
| Timeline |
DAX Index and REGIONS FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
REGIONS FINANCIAL PFD
Pair trading matchups for REGIONS FINANCIAL
Pair Trading with DAX Index and REGIONS FINANCIAL
The main advantage of trading using opposite DAX Index and REGIONS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, REGIONS FINANCIAL 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 REGIONS FINANCIAL will offset losses from the drop in REGIONS FINANCIAL's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| REGIONS FINANCIAL vs. BNP Paribas SA | REGIONS FINANCIAL vs. Deutsche Bank Aktiengesellschaft | REGIONS FINANCIAL vs. Santander Bank Polska |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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