Correlation Between DAX Index and UniCredit SpA
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By analyzing existing cross correlation between DAX Index and UniCredit SpA, you can compare the effects of market volatilities on DAX Index and UniCredit SpA 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 UniCredit SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and UniCredit SpA.
Diversification Opportunities for DAX Index and UniCredit SpA
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and UniCredit is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and UniCredit SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UniCredit SpA 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 UniCredit SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UniCredit SpA has no effect on the direction of DAX Index i.e., DAX Index and UniCredit SpA go up and down completely randomly.
Pair Corralation between DAX Index and UniCredit SpA
Assuming the 90 days trading horizon DAX Index is expected to generate 0.44 times more return on investment than UniCredit SpA. However, DAX Index is 2.28 times less risky than UniCredit SpA. It trades about 0.09 of its potential returns per unit of risk. UniCredit SpA is currently generating about -0.19 per unit of risk. If you would invest 1,925,734 in DAX Index on August 31, 2024 and sell it today you would earn a total of 36,911 from holding DAX Index or generate 1.92% 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. UniCredit SpA
Performance |
| Timeline |
DAX Index and UniCredit SpA Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
UniCredit SpA
Pair trading matchups for UniCredit SpA
Pair Trading with DAX Index and UniCredit SpA
The main advantage of trading using opposite DAX Index and UniCredit SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, UniCredit SpA 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 UniCredit SpA will offset losses from the drop in UniCredit SpA's long position.| DAX Index vs. BE Semiconductor Industries | DAX Index vs. REGAL ASIAN INVESTMENTS | DAX Index vs. SEI INVESTMENTS | DAX Index vs. National Beverage Corp |
| UniCredit SpA vs. Heartland Financial USA | UniCredit SpA vs. QBE Insurance Group | UniCredit SpA vs. Commonwealth Bank of | UniCredit SpA vs. THORNEY TECHS LTD |
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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