Correlation Between Xtrackers ShortDAX and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and AM EAGLE 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 AM EAGLE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on Xtrackers ShortDAX and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and AM EAGLE.
Diversification Opportunities for Xtrackers ShortDAX and AM EAGLE
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and AFG is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and AM EAGLE go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and AM EAGLE
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the AM EAGLE. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.93 times less risky than AM EAGLE. The etf trades about -0.07 of its potential returns per unit of risk. The AM EAGLE OUTFITTERS is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,820 in AM EAGLE OUTFITTERS on September 1, 2024 and sell it today you would lose (10.00) from holding AM EAGLE OUTFITTERS or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| Xtrackers ShortDAX |
| AM EAGLE OUTFITTERS |
Xtrackers ShortDAX and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and AM EAGLE
The main advantage of trading using opposite Xtrackers ShortDAX and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE'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 |
| AM EAGLE vs. AVITA Medical | AM EAGLE vs. EAT WELL INVESTMENT | AM EAGLE vs. Diamyd Medical AB | AM EAGLE vs. CompuGroup Medical SE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |