Correlation Between Xtrackers ShortDAX and Auckland International
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Auckland International 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 Auckland International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Auckland International Airport, you can compare the effects of market volatilities on Xtrackers ShortDAX and Auckland International 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 Auckland International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Auckland International.
Diversification Opportunities for Xtrackers ShortDAX and Auckland International
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Auckland is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Auckland International Airport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auckland International 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 Auckland International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auckland International has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Auckland International go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Auckland International
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Auckland International. In addition to that, Xtrackers ShortDAX is 1.19 times more volatile than Auckland International Airport. It trades about -0.1 of its total potential returns per unit of risk. Auckland International Airport is currently generating about 0.01 per unit of volatility. If you would invest 455.00 in Auckland International Airport on November 3, 2024 and sell it today you would lose (1.00) from holding Auckland International Airport or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Auckland International Airport
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Auckland International |
Xtrackers ShortDAX and Auckland International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Auckland International
The main advantage of trading using opposite Xtrackers ShortDAX and Auckland International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Auckland International 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 Auckland International will offset losses from the drop in Auckland International'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 |
| Auckland International vs. Coeur Mining | Auckland International vs. BOSTON BEER A | Auckland International vs. Calibre Mining Corp | Auckland International vs. Molson Coors Beverage |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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