Correlation Between Xtrackers ShortDAX and Nine Entertainment
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Nine Entertainment 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 Nine Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Nine Entertainment Co, you can compare the effects of market volatilities on Xtrackers ShortDAX and Nine Entertainment 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 Nine Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Nine Entertainment.
Diversification Opportunities for Xtrackers ShortDAX and Nine Entertainment
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Nine is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Nine Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Entertainment 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 Nine Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Entertainment has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Nine Entertainment go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Nine Entertainment
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Nine Entertainment. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 2.91 times less risky than Nine Entertainment. The etf trades about -0.02 of its potential returns per unit of risk. The Nine Entertainment Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 72.00 in Nine Entertainment Co on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Nine Entertainment Co or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Nine Entertainment Co
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Nine Entertainment |
Xtrackers ShortDAX and Nine Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Nine Entertainment
The main advantage of trading using opposite Xtrackers ShortDAX and Nine Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Nine Entertainment 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 Nine Entertainment will offset losses from the drop in Nine Entertainment'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 |
| Nine Entertainment vs. Axcelis Technologies | Nine Entertainment vs. DOCDATA | Nine Entertainment vs. Amkor Technology | Nine Entertainment vs. ORMAT TECHNOLOGIES |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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