Correlation Between USWE SPORTS and DAX Index
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By analyzing existing cross correlation between USWE SPORTS AB and DAX Index, you can compare the effects of market volatilities on USWE SPORTS and DAX Index 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 USWE SPORTS with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and DAX Index.
Diversification Opportunities for USWE SPORTS and DAX Index
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between USWE and DAX is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and DAX Index go up and down completely randomly.
Pair Corralation between USWE SPORTS and DAX Index
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the DAX Index. In addition to that, USWE SPORTS is 2.81 times more volatile than DAX Index. It trades about -0.2 of its total potential returns per unit of risk. DAX Index is currently generating about 0.5 per unit of volatility. If you would invest 1,903,364 in DAX Index on September 13, 2024 and sell it today you would earn a total of 136,552 from holding DAX Index or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. DAX Index
Performance |
| Timeline |
USWE SPORTS and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
USWE SPORTS AB
Pair trading matchups for USWE SPORTS
DAX Index
Pair trading matchups for DAX Index
Pair Trading with USWE SPORTS and DAX Index
The main advantage of trading using opposite USWE SPORTS and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| USWE SPORTS vs. Superior Plus Corp | USWE SPORTS vs. SIVERS SEMICONDUCTORS AB | USWE SPORTS vs. Norsk Hydro ASA | USWE SPORTS vs. Reliance Steel Aluminum |
| DAX Index vs. Consolidated Communications Holdings | DAX Index vs. Spirent Communications plc | DAX Index vs. Gamma Communications plc | DAX Index vs. CITIC Telecom International |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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