Correlation Between DAX Index and Realty Income
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By analyzing existing cross correlation between DAX Index and Realty Income, you can compare the effects of market volatilities on DAX Index and Realty Income 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 Realty Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Realty Income.
Diversification Opportunities for DAX Index and Realty Income
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Realty is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Realty Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Realty Income 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 Realty Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Realty Income has no effect on the direction of DAX Index i.e., DAX Index and Realty Income go up and down completely randomly.
Pair Corralation between DAX Index and Realty Income
Assuming the 90 days trading horizon DAX Index is expected to generate 0.71 times more return on investment than Realty Income. However, DAX Index is 1.41 times less risky than Realty Income. It trades about 0.11 of its potential returns per unit of risk. Realty Income is currently generating about -0.11 per unit of risk. If you would invest 1,884,679 in DAX Index on September 23, 2024 and sell it today you would earn a total of 103,796 from holding DAX Index or generate 5.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. Realty Income
Performance |
Timeline |
DAX Index and Realty Income Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Realty Income
Pair trading matchups for Realty Income
Pair Trading with DAX Index and Realty Income
The main advantage of trading using opposite DAX Index and Realty Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Realty Income 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 Realty Income will offset losses from the drop in Realty Income'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 |
Realty Income vs. Simon Property Group | Realty Income vs. Link Real Estate | Realty Income vs. Kimco Realty | Realty Income vs. Range Resources 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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