Correlation Between Xtrackers ShortDAX and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Amcor Plc 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 Amcor Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Amcor plc, you can compare the effects of market volatilities on Xtrackers ShortDAX and Amcor Plc 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 Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Amcor Plc.
Diversification Opportunities for Xtrackers ShortDAX and Amcor Plc
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Amcor is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc 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 Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Amcor Plc go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Amcor Plc
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Amcor Plc. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 2.1 times less risky than Amcor Plc. The etf trades about -0.5 of its potential returns per unit of risk. The Amcor plc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 933.00 in Amcor plc on September 13, 2024 and sell it today you would lose (2.00) from holding Amcor plc or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Amcor plc
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Amcor plc |
Xtrackers ShortDAX and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Amcor Plc
The main advantage of trading using opposite Xtrackers ShortDAX and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc'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 |
| Amcor Plc vs. Tsingtao Brewery | Amcor Plc vs. SALESFORCE INC CDR | Amcor Plc vs. CARSALESCOM | Amcor Plc vs. Carsales |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |