Correlation Between Xtrackers ShortDAX and NH HOTEL
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and NH HOTEL 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 NH HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and NH HOTEL GROUP, you can compare the effects of market volatilities on Xtrackers ShortDAX and NH HOTEL 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 NH HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and NH HOTEL.
Diversification Opportunities for Xtrackers ShortDAX and NH HOTEL
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and NH5 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and NH HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH HOTEL GROUP 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 NH HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH HOTEL GROUP has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and NH HOTEL go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and NH HOTEL
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the NH HOTEL. In addition to that, Xtrackers ShortDAX is 2.32 times more volatile than NH HOTEL GROUP. It trades about -0.29 of its total potential returns per unit of risk. NH HOTEL GROUP is currently generating about 0.04 per unit of volatility. If you would invest 624.00 in NH HOTEL GROUP on December 9, 2024 and sell it today you would earn a total of 5.00 from holding NH HOTEL GROUP or generate 0.8% 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. NH HOTEL GROUP
Performance |
| Timeline |
| Xtrackers ShortDAX |
| NH HOTEL GROUP |
Xtrackers ShortDAX and NH HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and NH HOTEL
The main advantage of trading using opposite Xtrackers ShortDAX and NH HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, NH HOTEL 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 NH HOTEL will offset losses from the drop in NH HOTEL'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 |
| NH HOTEL vs. Xiwang Special Steel | ||
| NH HOTEL vs. MAGIC SOFTWARE ENTR | ||
| NH HOTEL vs. Take Two Interactive Software | ||
| NH HOTEL vs. CosmoSteel Holdings Limited |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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