Correlation Between Xtrackers ShortDAX and GAMES OPERATORS
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and GAMES OPERATORS 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 GAMES OPERATORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and GAMES OPERATORS SA, you can compare the effects of market volatilities on Xtrackers ShortDAX and GAMES OPERATORS 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 GAMES OPERATORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and GAMES OPERATORS.
Diversification Opportunities for Xtrackers ShortDAX and GAMES OPERATORS
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and GAMES is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and GAMES OPERATORS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMES OPERATORS SA 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 GAMES OPERATORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMES OPERATORS SA has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and GAMES OPERATORS go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and GAMES OPERATORS
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the GAMES OPERATORS. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 2.79 times less risky than GAMES OPERATORS. The etf trades about -0.05 of its potential returns per unit of risk. The GAMES OPERATORS SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 209.00 in GAMES OPERATORS SA on October 11, 2024 and sell it today you would earn a total of 134.00 from holding GAMES OPERATORS SA or generate 64.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. GAMES OPERATORS SA
Performance |
| Timeline |
| Xtrackers ShortDAX |
| GAMES OPERATORS SA |
Xtrackers ShortDAX and GAMES OPERATORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and GAMES OPERATORS
The main advantage of trading using opposite Xtrackers ShortDAX and GAMES OPERATORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, GAMES OPERATORS 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 GAMES OPERATORS will offset losses from the drop in GAMES OPERATORS'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 |
| GAMES OPERATORS vs. Perseus Mining Limited | GAMES OPERATORS vs. MCEWEN MINING INC | GAMES OPERATORS vs. Comba Telecom Systems | GAMES OPERATORS vs. Jacquet Metal Service |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| 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 | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |