Correlation Between Xtrackers ShortDAX and JPMF Global
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and JPMF Global 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 JPMF Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and JPMF Global Natural, you can compare the effects of market volatilities on Xtrackers ShortDAX and JPMF Global 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 JPMF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and JPMF Global.
Diversification Opportunities for Xtrackers ShortDAX and JPMF Global
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and JPMF is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and JPMF Global Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMF Global Natural 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 JPMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMF Global Natural has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and JPMF Global go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and JPMF Global
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the JPMF Global. In addition to that, Xtrackers ShortDAX is 1.34 times more volatile than JPMF Global Natural. It trades about -0.09 of its total potential returns per unit of risk. JPMF Global Natural is currently generating about 0.04 per unit of volatility. If you would invest 1,200 in JPMF Global Natural on September 14, 2024 and sell it today you would earn a total of 114.00 from holding JPMF Global Natural or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.47% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. JPMF Global Natural
Performance |
| Timeline |
| Xtrackers ShortDAX |
| JPMF Global Natural |
Xtrackers ShortDAX and JPMF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and JPMF Global
The main advantage of trading using opposite Xtrackers ShortDAX and JPMF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, JPMF Global 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 JPMF Global will offset losses from the drop in JPMF Global'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 |
| JPMF Global vs. Groupama Entreprises N | JPMF Global vs. Renaissance Europe C | JPMF Global vs. Superior Plus Corp | JPMF Global vs. Origin Agritech |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |