Correlation Between Xtrackers ShortDAX and KSB SE
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By analyzing existing cross correlation between Xtrackers ShortDAX and KSB SE Co, you can compare the effects of market volatilities on Xtrackers ShortDAX and KSB SE 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 KSB SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and KSB SE.
Diversification Opportunities for Xtrackers ShortDAX and KSB SE
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and KSB is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and KSB SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSB 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 KSB SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSB SE has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and KSB SE go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and KSB SE
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the KSB SE. In addition to that, Xtrackers ShortDAX is 1.27 times more volatile than KSB SE Co. It trades about -0.05 of its total potential returns per unit of risk. KSB SE Co is currently generating about 0.05 per unit of volatility. If you would invest 57,600 in KSB SE Co on September 2, 2024 and sell it today you would earn a total of 2,200 from holding KSB SE Co or generate 3.82% 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. KSB SE Co
Performance |
| Timeline |
| Xtrackers ShortDAX |
| KSB SE |
Xtrackers ShortDAX and KSB SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and KSB SE
The main advantage of trading using opposite Xtrackers ShortDAX and KSB SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, KSB SE 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 KSB SE will offset losses from the drop in KSB SE'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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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