Correlation Between DAX Index and AutoNation
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and AutoNation, you can compare the effects of market volatilities on DAX Index and AutoNation 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 AutoNation. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and AutoNation.
Diversification Opportunities for DAX Index and AutoNation
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and AutoNation is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and AutoNation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoNation 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 AutoNation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoNation has no effect on the direction of DAX Index i.e., DAX Index and AutoNation go up and down completely randomly.
Pair Corralation between DAX Index and AutoNation
Assuming the 90 days trading horizon DAX Index is expected to under-perform the AutoNation. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.77 times less risky than AutoNation. The index trades about -0.09 of its potential returns per unit of risk. The AutoNation is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 16,505 in AutoNation on October 13, 2024 and sell it today you would earn a total of 295.00 from holding AutoNation or generate 1.79% 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. AutoNation
Performance |
| Timeline |
DAX Index and AutoNation Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
AutoNation
Pair trading matchups for AutoNation
Pair Trading with DAX Index and AutoNation
The main advantage of trading using opposite DAX Index and AutoNation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, AutoNation 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 AutoNation will offset losses from the drop in AutoNation's long position.| DAX Index vs. CAIRN HOMES EO | DAX Index vs. Forsys Metals Corp | DAX Index vs. Taylor Morrison Home | DAX Index vs. Hisense Home Appliances |
| AutoNation vs. ARDAGH METAL PACDL 0001 | AutoNation vs. De Grey Mining | AutoNation vs. Align Technology | AutoNation vs. Harmony Gold Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |