Correlation Between DAX Index and RTL Group
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By analyzing existing cross correlation between DAX Index and RTL Group SA, you can compare the effects of market volatilities on DAX Index and RTL 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 RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and RTL Group.
Diversification Opportunities for DAX Index and RTL Group
Good diversification
The 3 months correlation between DAX and RTL is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA 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 RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of DAX Index i.e., DAX Index and RTL Group go up and down completely randomly.
Pair Corralation between DAX Index and RTL Group
Assuming the 90 days trading horizon DAX Index is expected to generate 0.53 times more return on investment than RTL Group. However, DAX Index is 1.9 times less risky than RTL Group. It trades about 0.05 of its potential returns per unit of risk. RTL Group SA is currently generating about -0.11 per unit of risk. If you would invest 1,860,816 in DAX Index on September 1, 2024 and sell it today you would earn a total of 101,829 from holding DAX Index or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
DAX Index vs. RTL Group SA
Performance |
| Timeline |
DAX Index and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
RTL Group SA
Pair trading matchups for RTL Group
Pair Trading with DAX Index and RTL Group
The main advantage of trading using opposite DAX Index and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, RTL 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 RTL Group will offset losses from the drop in RTL 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 |
| RTL Group vs. Performance Food Group | RTL Group vs. Mitsubishi Gas Chemical | RTL Group vs. PREMIER FOODS | RTL Group vs. CHEMICAL INDUSTRIES |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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