Correlation Between TEXAS ROADHOUSE and DAX Index
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By analyzing existing cross correlation between TEXAS ROADHOUSE and DAX Index, you can compare the effects of market volatilities on TEXAS ROADHOUSE 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 TEXAS ROADHOUSE with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEXAS ROADHOUSE and DAX Index.
Diversification Opportunities for TEXAS ROADHOUSE and DAX Index
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between TEXAS and DAX is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding TEXAS ROADHOUSE and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and TEXAS ROADHOUSE 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 TEXAS ROADHOUSE 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 TEXAS ROADHOUSE i.e., TEXAS ROADHOUSE and DAX Index go up and down completely randomly.
Pair Corralation between TEXAS ROADHOUSE and DAX Index
Assuming the 90 days trading horizon TEXAS ROADHOUSE is expected to under-perform the DAX Index. In addition to that, TEXAS ROADHOUSE is 1.62 times more volatile than DAX Index. It trades about -0.08 of its total potential returns per unit of risk. DAX Index is currently generating about 0.1 per unit of volatility. If you would invest 2,031,381 in DAX Index on October 17, 2024 and sell it today you would earn a total of 26,087 from holding DAX Index or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEXAS ROADHOUSE vs. DAX Index
Performance |
| Timeline |
TEXAS ROADHOUSE and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
TEXAS ROADHOUSE
Pair trading matchups for TEXAS ROADHOUSE
DAX Index
Pair trading matchups for DAX Index
Pair Trading with TEXAS ROADHOUSE and DAX Index
The main advantage of trading using opposite TEXAS ROADHOUSE and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEXAS ROADHOUSE 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.| TEXAS ROADHOUSE vs. Scientific Games | TEXAS ROADHOUSE vs. PENN NATL GAMING | TEXAS ROADHOUSE vs. Erste Group Bank | TEXAS ROADHOUSE vs. BANK OF CHINA |
| DAX Index vs. CyberArk Software | DAX Index vs. Lendlease Group | DAX Index vs. PSI Software AG | DAX Index vs. Take Two Interactive Software |
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 CEOs Directory module to screen CEOs from public companies around the world.
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