Correlation Between Xtrackers ShortDAX and Games Workshop
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Games Workshop 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 Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Games Workshop Group, you can compare the effects of market volatilities on Xtrackers ShortDAX and Games Workshop 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 Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Games Workshop.
Diversification Opportunities for Xtrackers ShortDAX and Games Workshop
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Games is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Games Workshop Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Games Workshop Group 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 Games Workshop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Games Workshop Group has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Games Workshop go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Games Workshop
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Games Workshop. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.46 times less risky than Games Workshop. The etf trades about -0.04 of its potential returns per unit of risk. The Games Workshop Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,088 in Games Workshop Group on August 31, 2024 and sell it today you would earn a total of 6,812 from holding Games Workshop Group or generate 67.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Games Workshop Group
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Games Workshop Group |
Xtrackers ShortDAX and Games Workshop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Games Workshop
The main advantage of trading using opposite Xtrackers ShortDAX and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Games Workshop 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 Games Workshop will offset losses from the drop in Games Workshop'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 |
| Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc | Games Workshop vs. Apple Inc |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |