Correlation Between Strix Group and Deutsche Börse
Can any of the company-specific risk be diversified away by investing in both Strix Group and Deutsche Börse at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Strix Group and Deutsche Börse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Deutsche Brse AG, you can compare the effects of market volatilities on Strix Group and Deutsche Börse 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 Strix Group with a short position of Deutsche Börse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Deutsche Börse.
Diversification Opportunities for Strix Group and Deutsche Börse
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Strix and Deutsche is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Deutsche Brse AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Brse AG and Strix Group 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 Strix Group Plc are associated (or correlated) with Deutsche Börse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Brse AG has no effect on the direction of Strix Group i.e., Strix Group and Deutsche Börse go up and down completely randomly.
Pair Corralation between Strix Group and Deutsche Börse
Assuming the 90 days horizon Strix Group Plc is expected to under-perform the Deutsche Börse. In addition to that, Strix Group is 2.46 times more volatile than Deutsche Brse AG. It trades about -0.1 of its total potential returns per unit of risk. Deutsche Brse AG is currently generating about 0.13 per unit of volatility. If you would invest 18,740 in Deutsche Brse AG on September 5, 2024 and sell it today you would earn a total of 3,480 from holding Deutsche Brse AG or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Strix Group Plc vs. Deutsche Brse AG
Performance |
| Timeline |
| Strix Group Plc |
| Deutsche Brse AG |
Strix Group and Deutsche Börse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and Deutsche Börse
The main advantage of trading using opposite Strix Group and Deutsche Börse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, Deutsche Börse 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 Deutsche Börse will offset losses from the drop in Deutsche Börse's long position.| Strix Group vs. Hon Hai Precision | Strix Group vs. Samsung SDI Co | Strix Group vs. Murata Manufacturing Co | Strix Group vs. Mitsubishi Electric |
| Deutsche Börse vs. TOREX SEMICONDUCTOR LTD | Deutsche Börse vs. Vastned Retail NV | Deutsche Börse vs. Canon Marketing Japan | Deutsche Börse vs. SIDETRADE EO 1 |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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