Correlation Between DAX Index and Universal Health
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By analyzing existing cross correlation between DAX Index and Universal Health Realty, you can compare the effects of market volatilities on DAX Index and Universal Health 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 Universal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Universal Health.
Diversification Opportunities for DAX Index and Universal Health
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DAX and Universal is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Universal Health Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Health Realty 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 Universal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Health Realty has no effect on the direction of DAX Index i.e., DAX Index and Universal Health go up and down completely randomly.
Pair Corralation between DAX Index and Universal Health
Assuming the 90 days trading horizon DAX Index is expected to generate 0.46 times more return on investment than Universal Health. However, DAX Index is 2.19 times less risky than Universal Health. It trades about 0.08 of its potential returns per unit of risk. Universal Health Realty is currently generating about 0.0 per unit of risk. If you would invest 1,444,761 in DAX Index on August 26, 2024 and sell it today you would earn a total of 487,498 from holding DAX Index or generate 33.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Universal Health Realty
Performance |
| Timeline |
DAX Index and Universal Health Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Universal Health Realty
Pair trading matchups for Universal Health
Pair Trading with DAX Index and Universal Health
The main advantage of trading using opposite DAX Index and Universal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Universal Health 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 Universal Health will offset losses from the drop in Universal Health's long position.| DAX Index vs. Granite Construction | DAX Index vs. AGRICULTBK HADR25 YC | DAX Index vs. ADRIATIC METALS LS 013355 | DAX Index vs. GREENX METALS LTD |
| Universal Health vs. Welltower | Universal Health vs. Sabra Health Care | Universal Health vs. National Health Investors | Universal Health vs. The GEO Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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