Correlation Between Xtrackers ShortDAX and Bloom Energy
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Bloom Energy 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 Bloom Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Bloom Energy, you can compare the effects of market volatilities on Xtrackers ShortDAX and Bloom Energy 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 Bloom Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Bloom Energy.
Diversification Opportunities for Xtrackers ShortDAX and Bloom Energy
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Bloom is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Bloom Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloom Energy 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 Bloom Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloom Energy has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Bloom Energy go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Bloom Energy
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Bloom Energy. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 5.24 times less risky than Bloom Energy. The etf trades about -0.54 of its potential returns per unit of risk. The Bloom Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,280 in Bloom Energy on November 3, 2024 and sell it today you would earn a total of 58.00 from holding Bloom Energy or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Bloom Energy
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Bloom Energy |
Xtrackers ShortDAX and Bloom Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Bloom Energy
The main advantage of trading using opposite Xtrackers ShortDAX and Bloom Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Bloom Energy 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 Bloom Energy will offset losses from the drop in Bloom Energy'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 |
| Bloom Energy vs. MEDICAL FACILITIES NEW | Bloom Energy vs. ONWARD MEDICAL BV | Bloom Energy vs. PEPTONIC MEDICAL | Bloom Energy vs. PLAYTIKA HOLDING DL 01 |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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