Correlation Between Xtrackers ShortDAX and Amundi 3
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By analyzing existing cross correlation between Xtrackers ShortDAX and Amundi 3 Mois, you can compare the effects of market volatilities on Xtrackers ShortDAX and Amundi 3 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 Amundi 3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Amundi 3.
Diversification Opportunities for Xtrackers ShortDAX and Amundi 3
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Amundi is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Amundi 3 Mois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi 3 Mois 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 Amundi 3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi 3 Mois has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Amundi 3 go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Amundi 3
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Amundi 3. In addition to that, Xtrackers ShortDAX is 186.34 times more volatile than Amundi 3 Mois. It trades about -0.02 of its total potential returns per unit of risk. Amundi 3 Mois is currently generating about 1.42 per unit of volatility. If you would invest 10,324 in Amundi 3 Mois on September 1, 2024 and sell it today you would earn a total of 178.00 from holding Amundi 3 Mois or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Amundi 3 Mois
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Amundi 3 Mois |
Xtrackers ShortDAX and Amundi 3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Amundi 3
The main advantage of trading using opposite Xtrackers ShortDAX and Amundi 3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Amundi 3 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 Amundi 3 will offset losses from the drop in Amundi 3'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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