Correlation Between Xtrackers ShortDAX and Groupama Entreprises
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By analyzing existing cross correlation between Xtrackers ShortDAX and Groupama Entreprises N, you can compare the effects of market volatilities on Xtrackers ShortDAX and Groupama Entreprises 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 Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Groupama Entreprises.
Diversification Opportunities for Xtrackers ShortDAX and Groupama Entreprises
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Groupama is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises 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 Groupama Entreprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupama Entreprises has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Groupama Entreprises go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Groupama Entreprises
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to generate 111.3 times more return on investment than Groupama Entreprises. However, Xtrackers ShortDAX is 111.3 times more volatile than Groupama Entreprises N. It trades about 0.08 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.73 per unit of risk. If you would invest 82.00 in Xtrackers ShortDAX on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Xtrackers ShortDAX or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Groupama Entreprises N
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Groupama Entreprises |
Xtrackers ShortDAX and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Groupama Entreprises
The main advantage of trading using opposite Xtrackers ShortDAX and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Groupama Entreprises 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 Groupama Entreprises will offset losses from the drop in Groupama Entreprises' long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers ShortDAX | Groupama Entreprises vs. Xtrackers LevDAX |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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