Correlation Between Xtrackers ShortDAX and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Accent Resources 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 Accent Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Accent Resources NL, you can compare the effects of market volatilities on Xtrackers ShortDAX and Accent Resources 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 Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Accent Resources.
Diversification Opportunities for Xtrackers ShortDAX and Accent Resources
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Accent is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources 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 Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Accent Resources go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Accent Resources
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Accent Resources. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 8.75 times less risky than Accent Resources. The etf trades about -0.2 of its potential returns per unit of risk. The Accent Resources NL is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1.10 in Accent Resources NL on September 5, 2024 and sell it today you would earn a total of 0.70 from holding Accent Resources NL or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Accent Resources NL
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Accent Resources |
Xtrackers ShortDAX and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Accent Resources
The main advantage of trading using opposite Xtrackers ShortDAX and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
| Accent Resources vs. G III Apparel Group | Accent Resources vs. American Eagle Outfitters | Accent Resources vs. Entravision Communications | Accent Resources vs. Gamma Communications 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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