Correlation Between DAX Index and Sporttotal
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By analyzing existing cross correlation between DAX Index and Sporttotal AG, you can compare the effects of market volatilities on DAX Index and Sporttotal 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 Sporttotal. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Sporttotal.
Diversification Opportunities for DAX Index and Sporttotal
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Sporttotal is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Sporttotal AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporttotal AG 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 Sporttotal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporttotal AG has no effect on the direction of DAX Index i.e., DAX Index and Sporttotal go up and down completely randomly.
Pair Corralation between DAX Index and Sporttotal
Assuming the 90 days trading horizon DAX Index is expected to generate 1.18 times less return on investment than Sporttotal. But when comparing it to its historical volatility, DAX Index is 6.93 times less risky than Sporttotal. It trades about 0.08 of its potential returns per unit of risk. Sporttotal AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Sporttotal AG on August 29, 2024 and sell it today you would lose (21.00) from holding Sporttotal AG or give up 31.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Sporttotal AG
Performance |
| Timeline |
DAX Index and Sporttotal Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Sporttotal AG
Pair trading matchups for Sporttotal
Pair Trading with DAX Index and Sporttotal
The main advantage of trading using opposite DAX Index and Sporttotal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Sporttotal 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 Sporttotal will offset losses from the drop in Sporttotal's long position.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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