Correlation Between DAX Index and Patterson-UTI Energy
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By analyzing existing cross correlation between DAX Index and Patterson UTI Energy, you can compare the effects of market volatilities on DAX Index and Patterson-UTI Energy 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 Patterson-UTI Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Patterson-UTI Energy.
Diversification Opportunities for DAX Index and Patterson-UTI Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DAX and Patterson-UTI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Patterson UTI Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI Energy 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 Patterson-UTI Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of DAX Index i.e., DAX Index and Patterson-UTI Energy go up and down completely randomly.
Pair Corralation between DAX Index and Patterson-UTI Energy
Assuming the 90 days trading horizon DAX Index is expected to generate 0.29 times more return on investment than Patterson-UTI Energy. However, DAX Index is 3.43 times less risky than Patterson-UTI Energy. It trades about 0.09 of its potential returns per unit of risk. Patterson UTI Energy is currently generating about 0.01 per unit of risk. If you would invest 1,874,711 in DAX Index on September 3, 2024 and sell it today you would earn a total of 87,934 from holding DAX Index or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Patterson UTI Energy
Performance |
| Timeline |
DAX Index and Patterson-UTI Energy Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Patterson UTI Energy
Pair trading matchups for Patterson-UTI Energy
Pair Trading with DAX Index and Patterson-UTI Energy
The main advantage of trading using opposite DAX Index and Patterson-UTI Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Patterson-UTI Energy 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 Patterson-UTI Energy will offset losses from the drop in Patterson-UTI Energy's long position.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Patterson-UTI Energy vs. TOREX SEMICONDUCTOR LTD | Patterson-UTI Energy vs. Elmos Semiconductor SE | Patterson-UTI Energy vs. Laureate Education | Patterson-UTI Energy vs. Magnachip Semiconductor |
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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