Correlation Between Xtrackers ShortDAX and Delta Air
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Delta Air 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 Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Delta Air Lines, you can compare the effects of market volatilities on Xtrackers ShortDAX and Delta Air 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 Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Delta Air.
Diversification Opportunities for Xtrackers ShortDAX and Delta Air
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and Delta is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Delta Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines 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 Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Delta Air go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Delta Air
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Delta Air. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.91 times less risky than Delta Air. The etf trades about -0.52 of its potential returns per unit of risk. The Delta Air Lines is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 5,739 in Delta Air Lines on November 1, 2024 and sell it today you would earn a total of 815.00 from holding Delta Air Lines or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Delta Air Lines
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Delta Air Lines |
Xtrackers ShortDAX and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Delta Air
The main advantage of trading using opposite Xtrackers ShortDAX and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Delta Air 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 Delta Air will offset losses from the drop in Delta Air'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 |
| Delta Air vs. Xinhua Winshare Publishing | Delta Air vs. American Public Education | Delta Air vs. Cal Maine Foods | Delta Air vs. MONEYSUPERMARKET |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |