Correlation Between Xtrackers ShortDAX and NEW PACIFIC
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and NEW PACIFIC 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 NEW PACIFIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and NEW PACIFIC METALS, you can compare the effects of market volatilities on Xtrackers ShortDAX and NEW PACIFIC 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 NEW PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and NEW PACIFIC.
Diversification Opportunities for Xtrackers ShortDAX and NEW PACIFIC
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and NEW is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and NEW PACIFIC METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW PACIFIC METALS 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 NEW PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW PACIFIC METALS has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and NEW PACIFIC go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and NEW PACIFIC
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the NEW PACIFIC. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 2.35 times less risky than NEW PACIFIC. The etf trades about -0.51 of its potential returns per unit of risk. The NEW PACIFIC METALS is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 133.00 in NEW PACIFIC METALS on September 14, 2024 and sell it today you would earn a total of 8.00 from holding NEW PACIFIC METALS or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. NEW PACIFIC METALS
Performance |
| Timeline |
| Xtrackers ShortDAX |
| NEW PACIFIC METALS |
Xtrackers ShortDAX and NEW PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and NEW PACIFIC
The main advantage of trading using opposite Xtrackers ShortDAX and NEW PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, NEW PACIFIC 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 NEW PACIFIC will offset losses from the drop in NEW PACIFIC'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 |
| NEW PACIFIC vs. Superior Plus Corp | NEW PACIFIC vs. SIVERS SEMICONDUCTORS AB | NEW PACIFIC vs. Norsk Hydro ASA | NEW PACIFIC vs. Reliance Steel Aluminum |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |