Correlation Between Xtrackers ShortDAX and HYATT HOTELS-A
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and HYATT HOTELS-A 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 ShortDAX and HYATT HOTELS-A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and HYATT HOTELS A, you can compare the effects of market volatilities on Xtrackers ShortDAX and HYATT HOTELS-A 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 HYATT HOTELS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and HYATT HOTELS-A.
Diversification Opportunities for Xtrackers ShortDAX and HYATT HOTELS-A
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and HYATT is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A 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 HYATT HOTELS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and HYATT HOTELS-A go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and HYATT HOTELS-A
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the HYATT HOTELS-A. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.16 times less risky than HYATT HOTELS-A. The etf trades about -0.05 of its potential returns per unit of risk. The HYATT HOTELS A is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,315 in HYATT HOTELS A on August 24, 2024 and sell it today you would earn a total of 5,270 from holding HYATT HOTELS A or generate 56.58% 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. HYATT HOTELS A
Performance |
| Timeline |
| Xtrackers ShortDAX |
| HYATT HOTELS A |
Xtrackers ShortDAX and HYATT HOTELS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and HYATT HOTELS-A
The main advantage of trading using opposite Xtrackers ShortDAX and HYATT HOTELS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, HYATT HOTELS-A 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 HYATT HOTELS-A will offset losses from the drop in HYATT HOTELS-A'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 |
| HYATT HOTELS-A vs. PTT Global Chemical | HYATT HOTELS-A vs. Aluminum of | HYATT HOTELS-A vs. GREENX METALS LTD | HYATT HOTELS-A vs. SHIN ETSU CHEMICAL |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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