Correlation Between Sixt Leasing and DAX Index
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By analyzing existing cross correlation between Sixt Leasing SE and DAX Index, you can compare the effects of market volatilities on Sixt Leasing and DAX Index 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 Sixt Leasing with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and DAX Index.
Diversification Opportunities for Sixt Leasing and DAX Index
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sixt and DAX is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Sixt Leasing 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 Sixt Leasing SE are associated (or correlated) with DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and DAX Index go up and down completely randomly.
Pair Corralation between Sixt Leasing and DAX Index
Assuming the 90 days trading horizon Sixt Leasing is expected to generate 4.14 times less return on investment than DAX Index. In addition to that, Sixt Leasing is 3.45 times more volatile than DAX Index. It trades about 0.03 of its total potential returns per unit of risk. DAX Index is currently generating about 0.48 per unit of volatility. If you would invest 1,906,031 in DAX Index on September 20, 2024 and sell it today you would earn a total of 118,226 from holding DAX Index or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. DAX Index
Performance |
| Timeline |
Sixt Leasing and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Sixt Leasing SE
Pair trading matchups for Sixt Leasing
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Sixt Leasing and DAX Index
The main advantage of trading using opposite Sixt Leasing and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| DAX Index vs. Warner Music Group | DAX Index vs. Take Two Interactive Software | DAX Index vs. Sixt Leasing SE | DAX Index vs. JAPAN TOBACCO UNSPADR12 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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