Correlation Between Xtrackers ShortDAX and SEB SA
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and SEB SA 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 SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and SEB SA, you can compare the effects of market volatilities on Xtrackers ShortDAX and SEB SA 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 SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and SEB SA.
Diversification Opportunities for Xtrackers ShortDAX and SEB SA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xtrackers and SEB is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA 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 SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and SEB SA go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and SEB SA
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the SEB SA. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.2 times less risky than SEB SA. The etf trades about -0.3 of its potential returns per unit of risk. The SEB SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 9,570 in SEB SA on September 12, 2024 and sell it today you would lose (90.00) from holding SEB SA or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. SEB SA
Performance |
| Timeline |
| Xtrackers ShortDAX |
| SEB SA |
Xtrackers ShortDAX and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and SEB SA
The main advantage of trading using opposite Xtrackers ShortDAX and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA'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 |
| SEB SA vs. Suntory Beverage Food | SEB SA vs. ScanSource | SEB SA vs. YOOMA WELLNESS INC | SEB SA vs. Natural Health Trends |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |