Correlation Between Xtrackers ShortDAX and CARETRUST REIT
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and CARETRUST REIT 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 CARETRUST REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and CARETRUST REIT DL 01, you can compare the effects of market volatilities on Xtrackers ShortDAX and CARETRUST REIT 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 CARETRUST REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and CARETRUST REIT.
Diversification Opportunities for Xtrackers ShortDAX and CARETRUST REIT
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and CARETRUST is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and CARETRUST REIT DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARETRUST REIT DL 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 CARETRUST REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARETRUST REIT DL has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and CARETRUST REIT go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and CARETRUST REIT
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to generate 0.66 times more return on investment than CARETRUST REIT. However, Xtrackers ShortDAX is 1.52 times less risky than CARETRUST REIT. It trades about 0.04 of its potential returns per unit of risk. CARETRUST REIT DL 01 is currently generating about 0.03 per unit of risk. If you would invest 83.00 in Xtrackers ShortDAX on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Xtrackers ShortDAX or generate 1.2% 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. CARETRUST REIT DL 01
Performance |
| Timeline |
| Xtrackers ShortDAX |
| CARETRUST REIT DL |
Xtrackers ShortDAX and CARETRUST REIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and CARETRUST REIT
The main advantage of trading using opposite Xtrackers ShortDAX and CARETRUST REIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, CARETRUST REIT 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 CARETRUST REIT will offset losses from the drop in CARETRUST REIT'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 |
| CARETRUST REIT vs. EAST SIDE GAMES | CARETRUST REIT vs. Games Workshop Group | CARETRUST REIT vs. PENN NATL GAMING | CARETRUST REIT vs. Hochschild Mining plc |
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
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |