Correlation Between Xtrackers ShortDAX and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Safestore Holdings 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 Safestore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Safestore Holdings plc, you can compare the effects of market volatilities on Xtrackers ShortDAX and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Safestore Holdings.
Diversification Opportunities for Xtrackers ShortDAX and Safestore Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and Safestore is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Safestore Holdings go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Safestore Holdings
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Safestore Holdings. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 2.6 times less risky than Safestore Holdings. The etf trades about -0.56 of its potential returns per unit of risk. The Safestore Holdings plc is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 815.00 in Safestore Holdings plc on November 6, 2024 and sell it today you would lose (70.00) from holding Safestore Holdings plc or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Safestore Holdings plc
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Safestore Holdings plc |
Xtrackers ShortDAX and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Safestore Holdings
The main advantage of trading using opposite Xtrackers ShortDAX and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
| Safestore Holdings vs. Xinhua Winshare Publishing | Safestore Holdings vs. Laureate Education | Safestore Holdings vs. Odyssean Investment Trust | Safestore Holdings vs. DEVRY EDUCATION GRP |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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