Correlation Between REINET INVESTMENTS and DAX Index
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By analyzing existing cross correlation between REINET INVESTMENTS SCA and DAX Index, you can compare the effects of market volatilities on REINET INVESTMENTS 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 REINET INVESTMENTS with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of REINET INVESTMENTS and DAX Index.
Diversification Opportunities for REINET INVESTMENTS and DAX Index
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between REINET and DAX is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding REINET INVESTMENTS SCA and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and REINET INVESTMENTS 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 REINET INVESTMENTS SCA 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 REINET INVESTMENTS i.e., REINET INVESTMENTS and DAX Index go up and down completely randomly.
Pair Corralation between REINET INVESTMENTS and DAX Index
Assuming the 90 days horizon REINET INVESTMENTS SCA is expected to under-perform the DAX Index. In addition to that, REINET INVESTMENTS is 1.54 times more volatile than DAX Index. It trades about -0.02 of its total potential returns per unit of risk. DAX Index is currently generating about 0.14 per unit of volatility. If you would invest 1,907,754 in DAX Index on September 1, 2024 and sell it today you would earn a total of 54,891 from holding DAX Index or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REINET INVESTMENTS SCA vs. DAX Index
Performance |
| Timeline |
REINET INVESTMENTS and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
REINET INVESTMENTS SCA
Pair trading matchups for REINET INVESTMENTS
DAX Index
Pair trading matchups for DAX Index
Pair Trading with REINET INVESTMENTS and DAX Index
The main advantage of trading using opposite REINET INVESTMENTS and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REINET INVESTMENTS 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.| REINET INVESTMENTS vs. LG Display Co | REINET INVESTMENTS vs. ETFS Coffee ETC | REINET INVESTMENTS vs. Luckin Coffee | REINET INVESTMENTS vs. Madison Square Garden |
| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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