Correlation Between Xtrackers ShortDAX and Source KBW
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xtrackers ShortDAX and Source KBW NASDAQ, you can compare the effects of market volatilities on Xtrackers ShortDAX and Source KBW 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 Source KBW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Source KBW.
Diversification Opportunities for Xtrackers ShortDAX and Source KBW
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Source is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Source KBW NASDAQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Source KBW NASDAQ 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 Source KBW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Source KBW NASDAQ has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Source KBW go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Source KBW
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Source KBW. In addition to that, Xtrackers ShortDAX is 1.47 times more volatile than Source KBW NASDAQ. It trades about -0.3 of its total potential returns per unit of risk. Source KBW NASDAQ is currently generating about 0.17 per unit of volatility. If you would invest 5,572 in Source KBW NASDAQ on September 12, 2024 and sell it today you would earn a total of 221.00 from holding Source KBW NASDAQ or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Source KBW NASDAQ
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Source KBW NASDAQ |
Xtrackers ShortDAX and Source KBW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Source KBW
The main advantage of trading using opposite Xtrackers ShortDAX and Source KBW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Source KBW 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 Source KBW will offset losses from the drop in Source KBW'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 |
| Source KBW vs. UBS Fund Solutions | Source KBW vs. Xtrackers II | Source KBW vs. Xtrackers Nikkei 225 | Source KBW vs. iShares VII PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |