Correlation Between DAX Index and RENTOKIL INITIAL
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By analyzing existing cross correlation between DAX Index and RENTOKIL INITIAL ADR5, you can compare the effects of market volatilities on DAX Index and RENTOKIL INITIAL 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 RENTOKIL INITIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and RENTOKIL INITIAL.
Diversification Opportunities for DAX Index and RENTOKIL INITIAL
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and RENTOKIL is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and RENTOKIL INITIAL ADR5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RENTOKIL INITIAL ADR5 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 RENTOKIL INITIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RENTOKIL INITIAL ADR5 has no effect on the direction of DAX Index i.e., DAX Index and RENTOKIL INITIAL go up and down completely randomly.
Pair Corralation between DAX Index and RENTOKIL INITIAL
Assuming the 90 days trading horizon DAX Index is expected to generate 0.57 times more return on investment than RENTOKIL INITIAL. However, DAX Index is 1.76 times less risky than RENTOKIL INITIAL. It trades about 0.14 of its potential returns per unit of risk. RENTOKIL INITIAL ADR5 is currently generating about 0.07 per unit of risk. If you would invest 2,364,158 in DAX Index on April 25, 2025 and sell it today you would earn a total of 59,924 from holding DAX Index or generate 2.53% 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. RENTOKIL INITIAL ADR5
Performance |
Timeline |
DAX Index and RENTOKIL INITIAL Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
RENTOKIL INITIAL ADR5
Pair trading matchups for RENTOKIL INITIAL
Pair Trading with DAX Index and RENTOKIL INITIAL
The main advantage of trading using opposite DAX Index and RENTOKIL INITIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, RENTOKIL INITIAL 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 RENTOKIL INITIAL will offset losses from the drop in RENTOKIL INITIAL's long position.DAX Index vs. Transport International Holdings | DAX Index vs. GOLDGROUP MINING INC | DAX Index vs. LION ONE METALS | DAX Index vs. SUPERNOVA METALS P |
RENTOKIL INITIAL vs. Tencent Music Entertainment | RENTOKIL INITIAL vs. JD SPORTS FASH | RENTOKIL INITIAL vs. Galaxy Entertainment Group | RENTOKIL INITIAL vs. NORTH MEDIA AS |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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