Correlation Between Xtrackers Harvest and CHIR
Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and CHIR 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 CHIR 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 CHIR, you can compare the effects of market volatilities on Xtrackers Harvest and CHIR 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 CHIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and CHIR.
Diversification Opportunities for Xtrackers Harvest and CHIR
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and CHIR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and CHIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIR 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 CHIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIR has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and CHIR go up and down completely randomly.
Pair Corralation between Xtrackers Harvest and CHIR
If you would invest 1,711 in CHIR on September 13, 2024 and sell it today you would earn a total of 0.00 from holding CHIR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Xtrackers Harvest CSI vs. CHIR
Performance |
| Timeline |
| Xtrackers Harvest CSI |
| CHIR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xtrackers Harvest and CHIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Harvest and CHIR
The main advantage of trading using opposite Xtrackers Harvest and CHIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, CHIR 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 CHIR will offset losses from the drop in CHIR'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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