Correlation Between Xtrackers ShortDAX and Ambea AB
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Ambea AB 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 Ambea AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Ambea AB, you can compare the effects of market volatilities on Xtrackers ShortDAX and Ambea AB 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 Ambea AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Ambea AB.
Diversification Opportunities for Xtrackers ShortDAX and Ambea AB
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Ambea is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Ambea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambea AB 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 Ambea AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambea AB has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Ambea AB go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Ambea AB
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Ambea AB. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 2.09 times less risky than Ambea AB. The etf trades about -0.08 of its potential returns per unit of risk. The Ambea AB is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 315.00 in Ambea AB on September 12, 2024 and sell it today you would earn a total of 558.00 from holding Ambea AB or generate 177.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Ambea AB
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Ambea AB |
Xtrackers ShortDAX and Ambea AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Ambea AB
The main advantage of trading using opposite Xtrackers ShortDAX and Ambea AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Ambea AB 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 Ambea AB will offset losses from the drop in Ambea AB'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 |
| Ambea AB vs. LION ONE METALS | Ambea AB vs. SERI INDUSTRIAL EO | Ambea AB vs. ADRIATIC METALS LS 013355 | Ambea AB vs. MCEWEN MINING INC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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