Correlation Between Xtrackers ShortDAX and CARDINAL HEALTH
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and CARDINAL HEALTH 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 CARDINAL HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and CARDINAL HEALTH, you can compare the effects of market volatilities on Xtrackers ShortDAX and CARDINAL HEALTH 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 CARDINAL HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and CARDINAL HEALTH.
Diversification Opportunities for Xtrackers ShortDAX and CARDINAL HEALTH
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and CARDINAL is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and CARDINAL HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARDINAL HEALTH 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 CARDINAL HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARDINAL HEALTH has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and CARDINAL HEALTH go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and CARDINAL HEALTH
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to generate 0.98 times more return on investment than CARDINAL HEALTH. However, Xtrackers ShortDAX is 1.02 times less risky than CARDINAL HEALTH. It trades about 0.08 of its potential returns per unit of risk. CARDINAL HEALTH is currently generating about 0.05 per unit of risk. If you would invest 76.00 in Xtrackers ShortDAX on October 10, 2024 and sell it today you would earn a total of 1.00 from holding Xtrackers ShortDAX or generate 1.32% 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. CARDINAL HEALTH
Performance |
| Timeline |
| Xtrackers ShortDAX |
| CARDINAL HEALTH |
Xtrackers ShortDAX and CARDINAL HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and CARDINAL HEALTH
The main advantage of trading using opposite Xtrackers ShortDAX and CARDINAL HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, CARDINAL HEALTH 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 CARDINAL HEALTH will offset losses from the drop in CARDINAL HEALTH'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 |
| CARDINAL HEALTH vs. PENN NATL GAMING | CARDINAL HEALTH vs. Linedata Services SA | CARDINAL HEALTH vs. OURGAME INTHOLDL 00005 | CARDINAL HEALTH vs. NTT DATA |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |