Correlation Between Xtrackers MSCI and China Yuchai
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and China Yuchai 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 MSCI and China Yuchai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers MSCI All and China Yuchai International, you can compare the effects of market volatilities on Xtrackers MSCI and China Yuchai 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 MSCI with a short position of China Yuchai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and China Yuchai.
Diversification Opportunities for Xtrackers MSCI and China Yuchai
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xtrackers and China is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI All and China Yuchai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yuchai Interna and Xtrackers MSCI 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 MSCI All are associated (or correlated) with China Yuchai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yuchai Interna has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and China Yuchai go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and China Yuchai
If you would invest 2,807 in Xtrackers MSCI All on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Xtrackers MSCI All or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Xtrackers MSCI All vs. China Yuchai International
Performance |
| Timeline |
| Xtrackers MSCI All |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Yuchai Interna |
Xtrackers MSCI and China Yuchai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and China Yuchai
The main advantage of trading using opposite Xtrackers MSCI and China Yuchai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, China Yuchai 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 China Yuchai will offset losses from the drop in China Yuchai's long position.| Xtrackers MSCI vs. Formidable Fortress ETF | Xtrackers MSCI vs. VanEck Vectors ETF | Xtrackers MSCI vs. Sonida Senior Living | Xtrackers MSCI vs. China Yuchai International |
| China Yuchai vs. China Natural Resources | China Yuchai vs. Sonida Senior Living | China Yuchai vs. UTStarcom Holdings Corp | China Yuchai vs. Deswell Industries |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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