Correlation Between DAX Index and Kroger
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By analyzing existing cross correlation between DAX Index and The Kroger Co, you can compare the effects of market volatilities on DAX Index and Kroger 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 Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Kroger.
Diversification Opportunities for DAX Index and Kroger
Weak diversification
The 3 months correlation between DAX and Kroger is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and The Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Kroger 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 Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Kroger has no effect on the direction of DAX Index i.e., DAX Index and Kroger go up and down completely randomly.
Pair Corralation between DAX Index and Kroger
Assuming the 90 days trading horizon DAX Index is expected to generate 0.43 times more return on investment than Kroger. However, DAX Index is 2.34 times less risky than Kroger. It trades about 0.28 of its potential returns per unit of risk. The Kroger Co is currently generating about 0.09 per unit of risk. If you would invest 2,023,214 in DAX Index on December 4, 2024 and sell it today you would earn a total of 291,488 from holding DAX Index or generate 14.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. The Kroger Co
Performance |
Timeline |
DAX Index and Kroger Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
The Kroger Co
Pair trading matchups for Kroger
Pair Trading with DAX Index and Kroger
The main advantage of trading using opposite DAX Index and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.DAX Index vs. Boston Beer Co | DAX Index vs. THAI BEVERAGE | DAX Index vs. SCANSOURCE | DAX Index vs. Strategic Education |
Kroger vs. Iridium Communications | Kroger vs. SBA Communications Corp | Kroger vs. Ribbon Communications | Kroger vs. T MOBILE US |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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