Correlation Between Xtrackers ShortDAX and HomeToGo
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and HomeToGo 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 HomeToGo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and HomeToGo SE, you can compare the effects of market volatilities on Xtrackers ShortDAX and HomeToGo 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 HomeToGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and HomeToGo.
Diversification Opportunities for Xtrackers ShortDAX and HomeToGo
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and HomeToGo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and HomeToGo SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeToGo SE 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 HomeToGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeToGo SE has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and HomeToGo go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and HomeToGo
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the HomeToGo. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.71 times less risky than HomeToGo. The etf trades about -0.03 of its potential returns per unit of risk. The HomeToGo SE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 187.00 in HomeToGo SE on August 25, 2024 and sell it today you would earn a total of 19.00 from holding HomeToGo SE or generate 10.16% 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. HomeToGo SE
Performance |
| Timeline |
| Xtrackers ShortDAX |
| HomeToGo SE |
Xtrackers ShortDAX and HomeToGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and HomeToGo
The main advantage of trading using opposite Xtrackers ShortDAX and HomeToGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, HomeToGo 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 HomeToGo will offset losses from the drop in HomeToGo'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 |
| HomeToGo vs. ANTA SPORTS PRODUCT | HomeToGo vs. Universal Entertainment | HomeToGo vs. RCS MediaGroup SpA | HomeToGo vs. UNIVERSAL MUSIC GROUP |
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.
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