Correlation Between Xtrackers ShortDAX and ALM Offensif
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By analyzing existing cross correlation between Xtrackers ShortDAX and ALM Offensif, you can compare the effects of market volatilities on Xtrackers ShortDAX and ALM Offensif 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 ShortDAX with a short position of ALM Offensif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and ALM Offensif.
Diversification Opportunities for Xtrackers ShortDAX and ALM Offensif
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and ALM is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and ALM Offensif in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Offensif and Xtrackers ShortDAX 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 ShortDAX are associated (or correlated) with ALM Offensif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Offensif has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and ALM Offensif go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and ALM Offensif
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the ALM Offensif. In addition to that, Xtrackers ShortDAX is 3.1 times more volatile than ALM Offensif. It trades about -0.05 of its total potential returns per unit of risk. ALM Offensif is currently generating about 0.08 per unit of volatility. If you would invest 25,635 in ALM Offensif on August 30, 2024 and sell it today you would earn a total of 6,024 from holding ALM Offensif or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. ALM Offensif
Performance |
| Timeline |
| Xtrackers ShortDAX |
| ALM Offensif |
Xtrackers ShortDAX and ALM Offensif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and ALM Offensif
The main advantage of trading using opposite Xtrackers ShortDAX and ALM Offensif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, ALM Offensif 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 ALM Offensif will offset losses from the drop in ALM Offensif's long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
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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