Correlation Between DAX Index and Acadia Realty
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By analyzing existing cross correlation between DAX Index and Acadia Realty Trust, you can compare the effects of market volatilities on DAX Index and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Acadia Realty.
Diversification Opportunities for DAX Index and Acadia Realty
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Acadia is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of DAX Index i.e., DAX Index and Acadia Realty go up and down completely randomly.
Pair Corralation between DAX Index and Acadia Realty
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Acadia Realty. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.08 times less risky than Acadia Realty. The index trades about -0.05 of its potential returns per unit of risk. The Acadia Realty Trust is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,220 in Acadia Realty Trust on August 29, 2024 and sell it today you would earn a total of 180.00 from holding Acadia Realty Trust or generate 8.11% 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. Acadia Realty Trust
Performance |
| Timeline |
DAX Index and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Acadia Realty Trust
Pair trading matchups for Acadia Realty
Pair Trading with DAX Index and Acadia Realty
The main advantage of trading using opposite DAX Index and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
| Acadia Realty vs. Elmos Semiconductor SE | Acadia Realty vs. TRAINLINE PLC LS | Acadia Realty vs. TEXAS ROADHOUSE | Acadia Realty vs. Nishi Nippon Railroad Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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