Correlation Between DAX Index and STAG Industrial
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By analyzing existing cross correlation between DAX Index and STAG Industrial, you can compare the effects of market volatilities on DAX Index and STAG Industrial 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 STAG Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and STAG Industrial.
Diversification Opportunities for DAX Index and STAG Industrial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and STAG is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and STAG Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial 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 STAG Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial has no effect on the direction of DAX Index i.e., DAX Index and STAG Industrial go up and down completely randomly.
Pair Corralation between DAX Index and STAG Industrial
Assuming the 90 days trading horizon DAX Index is expected to generate 0.65 times more return on investment than STAG Industrial. However, DAX Index is 1.55 times less risky than STAG Industrial. It trades about 0.19 of its potential returns per unit of risk. STAG Industrial is currently generating about 0.0 per unit of risk. If you would invest 1,830,190 in DAX Index on September 6, 2024 and sell it today you would earn a total of 193,024 from holding DAX Index or generate 10.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
DAX Index vs. STAG Industrial
Performance |
Timeline |
DAX Index and STAG Industrial Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
STAG Industrial
Pair trading matchups for STAG Industrial
Pair Trading with DAX Index and STAG Industrial
The main advantage of trading using opposite DAX Index and STAG Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, STAG Industrial 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 STAG Industrial will offset losses from the drop in STAG Industrial's long position.DAX Index vs. Iridium Communications | DAX Index vs. China Communications Services | DAX Index vs. ALBIS LEASING AG | DAX Index vs. Air Lease |
STAG Industrial vs. Science Applications International | STAG Industrial vs. Ribbon Communications | STAG Industrial vs. Consolidated Communications Holdings | STAG Industrial vs. DATANG INTL POW |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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