Correlation Between Xtrackers ShortDAX and HOYA
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and HOYA 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 HOYA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and HOYA Corporation, you can compare the effects of market volatilities on Xtrackers ShortDAX and HOYA 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 HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and HOYA.
Diversification Opportunities for Xtrackers ShortDAX and HOYA
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and HOYA is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and HOYA go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and HOYA
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to generate 0.63 times more return on investment than HOYA. However, Xtrackers ShortDAX is 1.59 times less risky than HOYA. It trades about 0.12 of its potential returns per unit of risk. HOYA Corporation is currently generating about -0.02 per unit of risk. If you would invest 84.00 in Xtrackers ShortDAX on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Xtrackers ShortDAX or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. HOYA Corp.
Performance |
| Timeline |
| Xtrackers ShortDAX |
| HOYA |
Xtrackers ShortDAX and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and HOYA
The main advantage of trading using opposite Xtrackers ShortDAX and HOYA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, HOYA 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 HOYA will offset losses from the drop in HOYA'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 |
| HOYA vs. Intuitive Surgical | HOYA vs. Origin Agritech | HOYA vs. SIVERS SEMICONDUCTORS AB | HOYA vs. Talanx AG |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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