Correlation Between DAX Index and UTD OV
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By analyzing existing cross correlation between DAX Index and UTD OV BK LOC ADR1, you can compare the effects of market volatilities on DAX Index and UTD OV 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 UTD OV. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and UTD OV.
Diversification Opportunities for DAX Index and UTD OV
Weak diversification
The 3 months correlation between DAX and UTD is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and UTD OV BK LOC ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTD OV BK 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 UTD OV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTD OV BK has no effect on the direction of DAX Index i.e., DAX Index and UTD OV go up and down completely randomly.
Pair Corralation between DAX Index and UTD OV
Assuming the 90 days trading horizon DAX Index is expected to generate 1.11 times more return on investment than UTD OV. However, DAX Index is 1.11 times more volatile than UTD OV BK LOC ADR1. It trades about 0.17 of its potential returns per unit of risk. UTD OV BK LOC ADR1 is currently generating about 0.05 per unit of risk. If you would invest 1,990,914 in DAX Index on December 29, 2024 and sell it today you would earn a total of 255,238 from holding DAX Index or generate 12.82% 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. UTD OV BK LOC ADR1
Performance |
Timeline |
DAX Index and UTD OV Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
UTD OV BK LOC ADR1
Pair trading matchups for UTD OV
Pair Trading with DAX Index and UTD OV
The main advantage of trading using opposite DAX Index and UTD OV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, UTD OV 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 UTD OV will offset losses from the drop in UTD OV's long position.DAX Index vs. SIDETRADE EO 1 | DAX Index vs. National Retail Properties | DAX Index vs. TOMBADOR IRON LTD | DAX Index vs. CALTAGIRONE EDITORE |
UTD OV vs. Texas Roadhouse | UTD OV vs. Gaztransport Technigaz SA | UTD OV vs. G III Apparel Group | UTD OV vs. Cleanaway Waste Management |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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