Correlation Between SDAX Index and National Retail
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By analyzing existing cross correlation between SDAX Index and National Retail Properties, you can compare the effects of market volatilities on SDAX Index and National Retail 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 SDAX Index with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of SDAX Index and National Retail.
Diversification Opportunities for SDAX Index and National Retail
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SDAX and National is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SDAX Index and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and SDAX 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 SDAX Index are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of SDAX Index i.e., SDAX Index and National Retail go up and down completely randomly.
Pair Corralation between SDAX Index and National Retail
Assuming the 90 days trading horizon SDAX Index is expected to generate 3.32 times less return on investment than National Retail. But when comparing it to its historical volatility, SDAX Index is 1.93 times less risky than National Retail. It trades about 0.07 of its potential returns per unit of risk. National Retail Properties is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,011 in National Retail Properties on September 1, 2024 and sell it today you would earn a total of 187.00 from holding National Retail Properties or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SDAX Index vs. National Retail Properties
Performance |
| Timeline |
SDAX Index and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
SDAX Index
Pair trading matchups for SDAX Index
National Retail Properties
Pair trading matchups for National Retail
Pair Trading with SDAX Index and National Retail
The main advantage of trading using opposite SDAX Index and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SDAX Index position performs unexpectedly, National Retail 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 National Retail will offset losses from the drop in National Retail's long position.| SDAX Index vs. National Retail Properties | SDAX Index vs. Canon Marketing Japan | SDAX Index vs. SERI INDUSTRIAL EO | SDAX Index vs. GREENX METALS LTD |
| National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc | National Retail vs. Apple Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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