Correlation Between Xtrackers ShortDAX and FlatexDEGIRO
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and FlatexDEGIRO 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 FlatexDEGIRO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and flatexDEGIRO AG, you can compare the effects of market volatilities on Xtrackers ShortDAX and FlatexDEGIRO 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 FlatexDEGIRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and FlatexDEGIRO.
Diversification Opportunities for Xtrackers ShortDAX and FlatexDEGIRO
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and FlatexDEGIRO is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and flatexDEGIRO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on flatexDEGIRO AG 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 FlatexDEGIRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of flatexDEGIRO AG has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and FlatexDEGIRO go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and FlatexDEGIRO
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the FlatexDEGIRO. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.42 times less risky than FlatexDEGIRO. The etf trades about -0.3 of its potential returns per unit of risk. The flatexDEGIRO AG is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,576 in flatexDEGIRO AG on November 18, 2024 and sell it today you would earn a total of 278.00 from holding flatexDEGIRO AG or generate 17.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. flatexDEGIRO AG
Performance |
| Timeline |
| Xtrackers ShortDAX |
| flatexDEGIRO AG |
Xtrackers ShortDAX and FlatexDEGIRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and FlatexDEGIRO
The main advantage of trading using opposite Xtrackers ShortDAX and FlatexDEGIRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, FlatexDEGIRO 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 FlatexDEGIRO will offset losses from the drop in FlatexDEGIRO'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 |
| FlatexDEGIRO vs. COVIVIO HOTELS INH | FlatexDEGIRO vs. HYATT HOTELS A | FlatexDEGIRO vs. Corsair Gaming | FlatexDEGIRO vs. Xenia Hotels Resorts |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |