Correlation Between Xtrackers MSCI and The9
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and The9 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 The9 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 The9 Ltd ADR, you can compare the effects of market volatilities on Xtrackers MSCI and The9 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 The9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and The9.
Diversification Opportunities for Xtrackers MSCI and The9
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and The9 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI All and The9 Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The9 Ltd ADR 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 The9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The9 Ltd ADR has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and The9 go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and The9
If you would invest 829.00 in The9 Ltd ADR on September 1, 2024 and sell it today you would earn a total of 646.00 from holding The9 Ltd ADR or generate 77.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Xtrackers MSCI All vs. The9 Ltd ADR
Performance |
| Timeline |
| Xtrackers MSCI All |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| The9 Ltd ADR |
Xtrackers MSCI and The9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and The9
The main advantage of trading using opposite Xtrackers MSCI and The9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, The9 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 The9 will offset losses from the drop in The9'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 |
| The9 vs. Atari SA | The9 vs. Victory Square Technologies | The9 vs. Motorsport Gaming Us | The9 vs. Alpha Esports Tech |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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