Correlation Between DAX Index and Rite Aid
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By analyzing existing cross correlation between DAX Index and Rite Aid, you can compare the effects of market volatilities on DAX Index and Rite Aid 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 Rite Aid. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Rite Aid.
Diversification Opportunities for DAX Index and Rite Aid
Pay attention - limited upside
The 3 months correlation between DAX and Rite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Rite Aid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rite Aid 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 Rite Aid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rite Aid has no effect on the direction of DAX Index i.e., DAX Index and Rite Aid go up and down completely randomly.
Pair Corralation between DAX Index and Rite Aid
If you would invest 1,914,785 in DAX Index on September 5, 2024 and sell it today you would earn a total of 108,429 from holding DAX Index or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
DAX Index vs. Rite Aid
Performance |
| Timeline |
DAX Index and Rite Aid Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Rite Aid
Pair trading matchups for Rite Aid
Pair Trading with DAX Index and Rite Aid
The main advantage of trading using opposite DAX Index and Rite Aid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Rite Aid 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 Rite Aid will offset losses from the drop in Rite Aid's long position.| DAX Index vs. Hochschild Mining plc | DAX Index vs. Ming Le Sports | DAX Index vs. PLAYSTUDIOS A DL 0001 | DAX Index vs. USWE SPORTS AB |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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