Correlation Between Xtrackers ShortDAX and Expat Croatia
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Expat Croatia 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 Expat Croatia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Expat Croatia Crobex, you can compare the effects of market volatilities on Xtrackers ShortDAX and Expat Croatia 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 Expat Croatia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Expat Croatia.
Diversification Opportunities for Xtrackers ShortDAX and Expat Croatia
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Expat is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Expat Croatia Crobex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Croatia Crobex 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 Expat Croatia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Croatia Crobex has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Expat Croatia go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Expat Croatia
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Expat Croatia. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.2 times less risky than Expat Croatia. The etf trades about -0.14 of its potential returns per unit of risk. The Expat Croatia Crobex is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 98.00 in Expat Croatia Crobex on September 4, 2024 and sell it today you would earn a total of 3.00 from holding Expat Croatia Crobex or generate 3.06% 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. Expat Croatia Crobex
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Expat Croatia Crobex |
Xtrackers ShortDAX and Expat Croatia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Expat Croatia
The main advantage of trading using opposite Xtrackers ShortDAX and Expat Croatia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Expat Croatia 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 Expat Croatia will offset losses from the drop in Expat Croatia'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 |
| Expat Croatia vs. Expat Czech PX | Expat Croatia vs. Expat Serbia Belex15 | Expat Croatia vs. Expat Poland WIG20 | Expat Croatia vs. Expat Slovenia SBI |
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.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |