Correlation Between Universal Display and DAX Index
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By analyzing existing cross correlation between Universal Display and DAX Index, you can compare the effects of market volatilities on Universal Display and DAX Index 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 Universal Display with a short position of DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and DAX Index.
Diversification Opportunities for Universal Display and DAX Index
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Universal and DAX is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index and Universal Display 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 Universal Display are associated (or correlated) with DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Universal Display i.e., Universal Display and DAX Index go up and down completely randomly.
Pair Corralation between Universal Display and DAX Index
Assuming the 90 days horizon Universal Display is expected to generate 3.06 times more return on investment than DAX Index. However, Universal Display is 3.06 times more volatile than DAX Index. It trades about 0.03 of its potential returns per unit of risk. DAX Index is currently generating about 0.08 per unit of risk. If you would invest 11,559 in Universal Display on October 13, 2024 and sell it today you would earn a total of 3,111 from holding Universal Display or generate 26.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Universal Display vs. DAX Index
Performance |
| Timeline |
Universal Display and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Universal Display
Pair trading matchups for Universal Display
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Universal Display and DAX Index
The main advantage of trading using opposite Universal Display and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Universal Display vs. Luckin Coffee | Universal Display vs. MAGNUM MINING EXP | Universal Display vs. SOUTHWEST AIRLINES | Universal Display vs. AEGEAN AIRLINES |
| DAX Index vs. CAIRN HOMES EO | DAX Index vs. Forsys Metals Corp | DAX Index vs. Taylor Morrison Home | DAX Index vs. Hisense Home Appliances |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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