Correlation Between Xtrackers ShortDAX and Henry Schein
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Henry Schein 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 Henry Schein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Henry Schein, you can compare the effects of market volatilities on Xtrackers ShortDAX and Henry Schein 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 Henry Schein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Henry Schein.
Diversification Opportunities for Xtrackers ShortDAX and Henry Schein
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Henry is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Henry Schein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Schein 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 Henry Schein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Schein has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Henry Schein go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Henry Schein
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Henry Schein. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.6 times less risky than Henry Schein. The etf trades about -0.14 of its potential returns per unit of risk. The Henry Schein is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 6,448 in Henry Schein on September 3, 2024 and sell it today you would earn a total of 876.00 from holding Henry Schein or generate 13.59% 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. Henry Schein
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Henry Schein |
Xtrackers ShortDAX and Henry Schein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Henry Schein
The main advantage of trading using opposite Xtrackers ShortDAX and Henry Schein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Henry Schein 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 Henry Schein will offset losses from the drop in Henry Schein'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 |
| Henry Schein vs. MCEWEN MINING INC | Henry Schein vs. Zijin Mining Group | Henry Schein vs. LION ONE METALS | Henry Schein vs. Motorcar Parts of |
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 Stocks Directory module to find actively traded stocks across global markets.
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