Correlation Between Xtrackers ShortDAX and Powercell Sweden
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Powercell Sweden 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 Powercell Sweden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Powercell Sweden, you can compare the effects of market volatilities on Xtrackers ShortDAX and Powercell Sweden 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 Powercell Sweden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Powercell Sweden.
Diversification Opportunities for Xtrackers ShortDAX and Powercell Sweden
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Powercell is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Powercell Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powercell Sweden 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 Powercell Sweden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powercell Sweden has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Powercell Sweden go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Powercell Sweden
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to generate 0.33 times more return on investment than Powercell Sweden. However, Xtrackers ShortDAX is 3.01 times less risky than Powercell Sweden. It trades about 0.08 of its potential returns per unit of risk. Powercell Sweden is currently generating about -0.12 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Powercell Sweden
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Powercell Sweden |
Xtrackers ShortDAX and Powercell Sweden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Powercell Sweden
The main advantage of trading using opposite Xtrackers ShortDAX and Powercell Sweden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Powercell Sweden 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 Powercell Sweden will offset losses from the drop in Powercell Sweden'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 |
| Powercell Sweden vs. Motorcar Parts of | Powercell Sweden vs. INDOFOOD AGRI RES | Powercell Sweden vs. HF FOODS GRP | Powercell Sweden vs. PT Indofood Sukses |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |