Correlation Between DAX Index and UNITED URBAN
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and UNITED URBAN INV, you can compare the effects of market volatilities on DAX Index and UNITED URBAN 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 UNITED URBAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and UNITED URBAN.
Diversification Opportunities for DAX Index and UNITED URBAN
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and UNITED is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and UNITED URBAN INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED URBAN INV 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 UNITED URBAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED URBAN INV has no effect on the direction of DAX Index i.e., DAX Index and UNITED URBAN go up and down completely randomly.
Pair Corralation between DAX Index and UNITED URBAN
Assuming the 90 days trading horizon DAX Index is expected to generate 0.36 times more return on investment than UNITED URBAN. However, DAX Index is 2.76 times less risky than UNITED URBAN. It trades about 0.28 of its potential returns per unit of risk. UNITED URBAN INV is currently generating about 0.08 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 | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. UNITED URBAN INV
Performance |
Timeline |
DAX Index and UNITED URBAN Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
UNITED URBAN INV
Pair trading matchups for UNITED URBAN
Pair Trading with DAX Index and UNITED URBAN
The main advantage of trading using opposite DAX Index and UNITED URBAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, UNITED URBAN 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 UNITED URBAN will offset losses from the drop in UNITED URBAN's long position.DAX Index vs. Boston Beer Co | DAX Index vs. THAI BEVERAGE | DAX Index vs. SCANSOURCE | DAX Index vs. Strategic Education |
UNITED URBAN vs. CHRYSALIS INVESTMENTS LTD | UNITED URBAN vs. AGNC Investment Corp | UNITED URBAN vs. Gladstone Investment | UNITED URBAN vs. Enter Air SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |