Correlation Between DAX Index and Uber Technologies
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By analyzing existing cross correlation between DAX Index and Uber Technologies, you can compare the effects of market volatilities on DAX Index and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Uber Technologies.
Diversification Opportunities for DAX Index and Uber Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Uber is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of DAX Index i.e., DAX Index and Uber Technologies go up and down completely randomly.
Pair Corralation between DAX Index and Uber Technologies
Assuming the 90 days trading horizon DAX Index is expected to generate 0.28 times more return on investment than Uber Technologies. However, DAX Index is 3.58 times less risky than Uber Technologies. It trades about 0.09 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.02 per unit of risk. If you would invest 1,815,524 in DAX Index on September 24, 2024 and sell it today you would earn a total of 172,951 from holding DAX Index or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Uber Technologies
Performance |
| Timeline |
DAX Index and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Uber Technologies
Pair trading matchups for Uber Technologies
Pair Trading with DAX Index and Uber Technologies
The main advantage of trading using opposite DAX Index and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| DAX Index vs. Seven West Media | DAX Index vs. TERADATA | DAX Index vs. DICKER DATA LTD | DAX Index vs. Datang International Power |
| Uber Technologies vs. BW OFFSHORE LTD | Uber Technologies vs. Jacquet Metal Service | Uber Technologies vs. WT OFFSHORE | Uber Technologies vs. ADRIATIC METALS LS 013355 |
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 CEOs Directory module to screen CEOs from public companies around the world.
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