Correlation Between Xtrackers Harvest and CHIE
Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and CHIE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xtrackers Harvest and CHIE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Harvest CSI and CHIE, you can compare the effects of market volatilities on Xtrackers Harvest and CHIE 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 Xtrackers Harvest with a short position of CHIE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and CHIE.
Diversification Opportunities for Xtrackers Harvest and CHIE
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xtrackers and CHIE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and CHIE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIE and Xtrackers Harvest 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 Xtrackers Harvest CSI are associated (or correlated) with CHIE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIE has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and CHIE go up and down completely randomly.
Pair Corralation between Xtrackers Harvest and CHIE
Given the investment horizon of 90 days Xtrackers Harvest is expected to generate 2.91 times less return on investment than CHIE. In addition to that, Xtrackers Harvest is 2.1 times more volatile than CHIE. It trades about 0.02 of its total potential returns per unit of risk. CHIE is currently generating about 0.1 per unit of volatility. If you would invest 1,475 in CHIE on September 12, 2024 and sell it today you would earn a total of 5.00 from holding CHIE or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.14% |
| Values | Daily Returns |
Xtrackers Harvest CSI vs. CHIE
Performance |
| Timeline |
| Xtrackers Harvest CSI |
| CHIE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xtrackers Harvest and CHIE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Harvest and CHIE
The main advantage of trading using opposite Xtrackers Harvest and CHIE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, CHIE 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 CHIE will offset losses from the drop in CHIE's long position.| Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. KraneShares CSI China |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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