Correlation Between DAX Index and Ultra Clean
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Ultra Clean Holdings, you can compare the effects of market volatilities on DAX Index and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Ultra Clean.
Diversification Opportunities for DAX Index and Ultra Clean
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Ultra is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of DAX Index i.e., DAX Index and Ultra Clean go up and down completely randomly.
Pair Corralation between DAX Index and Ultra Clean
Assuming the 90 days trading horizon DAX Index is expected to generate 0.17 times more return on investment than Ultra Clean. However, DAX Index is 5.96 times less risky than Ultra Clean. It trades about 0.28 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about -0.11 per unit of risk. If you would invest 1,993,362 in DAX Index on December 1, 2024 and sell it today you would earn a total of 261,781 from holding DAX Index or generate 13.13% 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. Ultra Clean Holdings
Performance |
Timeline |
DAX Index and Ultra Clean Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Ultra Clean Holdings
Pair trading matchups for Ultra Clean
Pair Trading with DAX Index and Ultra Clean
The main advantage of trading using opposite DAX Index and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.DAX Index vs. Phibro Animal Health | DAX Index vs. Cardinal Health | DAX Index vs. Siemens Healthineers AG | DAX Index vs. CARDINAL HEALTH |
Ultra Clean vs. INTERCONT HOTELS | Ultra Clean vs. USWE SPORTS AB | Ultra Clean vs. JD SPORTS FASH | Ultra Clean vs. DICKS Sporting Goods |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Stocks Directory Find actively traded stocks across global markets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Fundamental Analysis View fundamental data based on most recent published financial statements |