Correlation Between DAX Index and Gateway Real
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By analyzing existing cross correlation between DAX Index and Gateway Real Estate, you can compare the effects of market volatilities on DAX Index and Gateway Real 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 DAX Index with a short position of Gateway Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Gateway Real.
Diversification Opportunities for DAX Index and Gateway Real
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Gateway is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Gateway Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Real Estate and DAX 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 DAX Index are associated (or correlated) with Gateway Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Real Estate has no effect on the direction of DAX Index i.e., DAX Index and Gateway Real go up and down completely randomly.
Pair Corralation between DAX Index and Gateway Real
Assuming the 90 days trading horizon DAX Index is expected to generate 3.35 times less return on investment than Gateway Real. But when comparing it to its historical volatility, DAX Index is 13.34 times less risky than Gateway Real. It trades about 0.09 of its potential returns per unit of risk. Gateway Real Estate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Gateway Real Estate on September 24, 2024 and sell it today you would lose (24.00) from holding Gateway Real Estate or give up 35.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.02% |
Values | Daily Returns |
DAX Index vs. Gateway Real Estate
Performance |
Timeline |
DAX Index and Gateway Real Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Gateway Real Estate
Pair trading matchups for Gateway Real
Pair Trading with DAX Index and Gateway Real
The main advantage of trading using opposite DAX Index and Gateway Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Gateway Real 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 Gateway Real will offset losses from the drop in Gateway Real's long position.DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
Gateway Real vs. Deutsche Wohnen SE | Gateway Real vs. Gateway Real Estate | Gateway Real vs. TIMES CHINA HLDGS | Gateway Real vs. LANDSEA HOMES P |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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