Correlation Between Xtrackers ShortDAX and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Equitable Holdings 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 Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Equitable Holdings, you can compare the effects of market volatilities on Xtrackers ShortDAX and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Equitable Holdings.
Diversification Opportunities for Xtrackers ShortDAX and Equitable Holdings
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Equitable is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Equitable Holdings go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Equitable Holdings
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Equitable Holdings. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.13 times less risky than Equitable Holdings. The etf trades about -0.06 of its potential returns per unit of risk. The Equitable Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,606 in Equitable Holdings on August 25, 2024 and sell it today you would earn a total of 1,794 from holding Equitable Holdings or generate 68.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Equitable Holdings
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Equitable Holdings |
Xtrackers ShortDAX and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Equitable Holdings
The main advantage of trading using opposite Xtrackers ShortDAX and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
| Equitable Holdings vs. Allianz SE | Equitable Holdings vs. ALLIANZ SE UNSPADR | Equitable Holdings vs. AXA SA | Equitable Holdings vs. ASSGENERALI ADR 12EO |
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 Stocks Directory module to find actively traded stocks across global markets.
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