Correlation Between DAX Index and UDR
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By analyzing existing cross correlation between DAX Index and UDR Inc, you can compare the effects of market volatilities on DAX Index and UDR 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 UDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and UDR.
Diversification Opportunities for DAX Index and UDR
Average diversification
The 3 months correlation between DAX and UDR is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and UDR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UDR Inc 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 UDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UDR Inc has no effect on the direction of DAX Index i.e., DAX Index and UDR go up and down completely randomly.
Pair Corralation between DAX Index and UDR
Assuming the 90 days trading horizon DAX Index is expected to generate 0.6 times more return on investment than UDR. However, DAX Index is 1.68 times less risky than UDR. It trades about 0.08 of its potential returns per unit of risk. UDR Inc is currently generating about 0.04 per unit of risk. If you would invest 1,594,984 in DAX Index on September 1, 2024 and sell it today you would earn a total of 367,661 from holding DAX Index or generate 23.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. UDR Inc
Performance |
| Timeline |
DAX Index and UDR Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
UDR Inc
Pair trading matchups for UDR
Pair Trading with DAX Index and UDR
The main advantage of trading using opposite DAX Index and UDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, UDR 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 UDR will offset losses from the drop in UDR'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 |
| UDR vs. Internet Thailand PCL | UDR vs. JSC Halyk bank | UDR vs. Heartland Financial USA | UDR vs. VIRG NATL BANKSH |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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