Correlation Between Autoneum Holding and Xtrackers MSCI
Can any of the company-specific risk be diversified away by investing in both Autoneum Holding and Xtrackers MSCI 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 Autoneum Holding and Xtrackers MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autoneum Holding AG and Xtrackers MSCI China, you can compare the effects of market volatilities on Autoneum Holding and Xtrackers MSCI 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 Autoneum Holding with a short position of Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autoneum Holding and Xtrackers MSCI.
Diversification Opportunities for Autoneum Holding and Xtrackers MSCI
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Autoneum and Xtrackers is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Autoneum Holding AG and Xtrackers MSCI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI China and Autoneum Holding 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 Autoneum Holding AG are associated (or correlated) with Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI China has no effect on the direction of Autoneum Holding i.e., Autoneum Holding and Xtrackers MSCI go up and down completely randomly.
Pair Corralation between Autoneum Holding and Xtrackers MSCI
Assuming the 90 days trading horizon Autoneum Holding AG is expected to under-perform the Xtrackers MSCI. But the stock apears to be less risky and, when comparing its historical volatility, Autoneum Holding AG is 1.44 times less risky than Xtrackers MSCI. The stock trades about -0.43 of its potential returns per unit of risk. The Xtrackers MSCI China is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,366 in Xtrackers MSCI China on August 31, 2024 and sell it today you would earn a total of 4.00 from holding Xtrackers MSCI China or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autoneum Holding AG vs. Xtrackers MSCI China
Performance |
| Timeline |
| Autoneum Holding |
| Xtrackers MSCI China |
Autoneum Holding and Xtrackers MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autoneum Holding and Xtrackers MSCI
The main advantage of trading using opposite Autoneum Holding and Xtrackers MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autoneum Holding position performs unexpectedly, Xtrackers MSCI 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 Xtrackers MSCI will offset losses from the drop in Xtrackers MSCI's long position.| Autoneum Holding vs. Rieter Holding AG | Autoneum Holding vs. Comet Holding AG | Autoneum Holding vs. VAT Group AG | Autoneum Holding vs. Bossard Holding AG |
| Xtrackers MSCI vs. UBSFund Solutions MSCI | Xtrackers MSCI vs. Vanguard SP 500 | Xtrackers MSCI vs. iShares VII PLC | Xtrackers MSCI vs. iShares Core SP |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |