Correlation Between Xtrackers ShortDAX and PNE AG
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By analyzing existing cross correlation between Xtrackers ShortDAX and PNE AG, you can compare the effects of market volatilities on Xtrackers ShortDAX and PNE AG 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 PNE AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and PNE AG.
Diversification Opportunities for Xtrackers ShortDAX and PNE AG
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and PNE is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and PNE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNE AG 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 PNE AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNE AG has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and PNE AG go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and PNE AG
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the PNE AG. In addition to that, Xtrackers ShortDAX is 1.51 times more volatile than PNE AG. It trades about -0.14 of its total potential returns per unit of risk. PNE AG is currently generating about -0.17 per unit of volatility. If you would invest 1,156 in PNE AG on September 3, 2024 and sell it today you would lose (42.00) from holding PNE AG or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. PNE AG
Performance |
| Timeline |
| Xtrackers ShortDAX |
| PNE AG |
Xtrackers ShortDAX and PNE AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and PNE AG
The main advantage of trading using opposite Xtrackers ShortDAX and PNE AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, PNE AG 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 PNE AG will offset losses from the drop in PNE AG'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 |
| PNE AG vs. FARO Technologies | PNE AG vs. Virtus Investment Partners | PNE AG vs. Gladstone Investment | PNE AG vs. REINET INVESTMENTS SCA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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