Correlation Between DAX Index and UBS Money
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By analyzing existing cross correlation between DAX Index and UBS Money Market, you can compare the effects of market volatilities on DAX Index and UBS Money 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 UBS Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and UBS Money.
Diversification Opportunities for DAX Index and UBS Money
Very weak diversification
The 3 months correlation between DAX and UBS is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and UBS Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Money Market 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 UBS Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Money Market has no effect on the direction of DAX Index i.e., DAX Index and UBS Money go up and down completely randomly.
Pair Corralation between DAX Index and UBS Money
Assuming the 90 days trading horizon DAX Index is expected to generate 2.09 times more return on investment than UBS Money. However, DAX Index is 2.09 times more volatile than UBS Money Market. It trades about 0.26 of its potential returns per unit of risk. UBS Money Market is currently generating about 0.26 per unit of risk. If you would invest 1,944,860 in DAX Index on September 12, 2024 and sell it today you would earn a total of 95,056 from holding DAX Index or generate 4.89% 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. UBS Money Market
Performance |
| Timeline |
DAX Index and UBS Money Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
UBS Money Market
Pair trading matchups for UBS Money
Pair Trading with DAX Index and UBS Money
The main advantage of trading using opposite DAX Index and UBS Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, UBS Money 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 UBS Money will offset losses from the drop in UBS Money's long position.| DAX Index vs. Arrow Electronics | DAX Index vs. CANON MARKETING JP | DAX Index vs. The Trade Desk | DAX Index vs. METHODE ELECTRONICS |
| UBS Money vs. Groupama Entreprises N | UBS Money vs. Renaissance Europe C | UBS Money vs. Superior Plus Corp | UBS Money vs. Origin Agritech |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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