Correlation Between DAX Index and UmweltBank
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By analyzing existing cross correlation between DAX Index and UmweltBank AG, you can compare the effects of market volatilities on DAX Index and UmweltBank 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 UmweltBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and UmweltBank.
Diversification Opportunities for DAX Index and UmweltBank
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and UmweltBank is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and UmweltBank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UmweltBank AG 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 UmweltBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UmweltBank AG has no effect on the direction of DAX Index i.e., DAX Index and UmweltBank go up and down completely randomly.
Pair Corralation between DAX Index and UmweltBank
Assuming the 90 days trading horizon DAX Index is expected to generate 0.27 times more return on investment than UmweltBank. However, DAX Index is 3.64 times less risky than UmweltBank. It trades about 0.0 of its potential returns per unit of risk. UmweltBank AG is currently generating about -0.08 per unit of risk. If you would invest 2,032,916 in DAX Index on October 11, 2024 and sell it today you would earn a total of 78.00 from holding DAX Index or generate 0.0% 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. UmweltBank AG
Performance |
| Timeline |
DAX Index and UmweltBank Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
UmweltBank AG
Pair trading matchups for UmweltBank
Pair Trading with DAX Index and UmweltBank
The main advantage of trading using opposite DAX Index and UmweltBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, UmweltBank 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 UmweltBank will offset losses from the drop in UmweltBank's long position.| DAX Index vs. Scottish Mortgage Investment | DAX Index vs. Keck Seng Investments | DAX Index vs. Lendlease Group | DAX Index vs. FIRST SAVINGS FINL |
| UmweltBank vs. Shenandoah Telecommunications | UmweltBank vs. CRISPR Therapeutics AG | UmweltBank vs. Laureate Education | UmweltBank vs. Grand Canyon Education |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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