Correlation Between Xtrackers ShortDAX and BNP Paribas
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By analyzing existing cross correlation between Xtrackers ShortDAX and BNP Paribas Easy, you can compare the effects of market volatilities on Xtrackers ShortDAX and BNP Paribas 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 BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and BNP Paribas.
Diversification Opportunities for Xtrackers ShortDAX and BNP Paribas
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and BNP is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy 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 BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas Easy has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and BNP Paribas go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and BNP Paribas
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the BNP Paribas. In addition to that, Xtrackers ShortDAX is 1.01 times more volatile than BNP Paribas Easy. It trades about -0.04 of its total potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.01 per unit of volatility. If you would invest 1,862 in BNP Paribas Easy on September 3, 2024 and sell it today you would lose (2.00) from holding BNP Paribas Easy or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. BNP Paribas Easy
Performance |
| Timeline |
| Xtrackers ShortDAX |
| BNP Paribas Easy |
Xtrackers ShortDAX and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and BNP Paribas
The main advantage of trading using opposite Xtrackers ShortDAX and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
| BNP Paribas vs. UBS Fund Solutions | BNP Paribas vs. Xtrackers II | BNP Paribas vs. Xtrackers Nikkei 225 | BNP Paribas vs. iShares VII PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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