Correlation Between Xtrackers ShortDAX and PICC Property
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and PICC Property 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 PICC Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and PICC Property and, you can compare the effects of market volatilities on Xtrackers ShortDAX and PICC Property 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 PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and PICC Property.
Diversification Opportunities for Xtrackers ShortDAX and PICC Property
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and PICC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property 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 PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and PICC Property go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and PICC Property
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the PICC Property. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 3.49 times less risky than PICC Property. The etf trades about -0.05 of its potential returns per unit of risk. The PICC Property and is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 44.00 in PICC Property and on September 4, 2024 and sell it today you would earn a total of 96.00 from holding PICC Property and or generate 218.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. PICC Property and
Performance |
| Timeline |
| Xtrackers ShortDAX |
| PICC Property |
Xtrackers ShortDAX and PICC Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and PICC Property
The main advantage of trading using opposite Xtrackers ShortDAX and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property'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 |
| PICC Property vs. Flutter Entertainment PLC | PICC Property vs. COMMERCIAL VEHICLE | PICC Property vs. CNVISION MEDIA | PICC Property vs. Cars Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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