Correlation Between Xtrackers ShortDAX and KERINGUNSPADR 110
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and KERINGUNSPADR 110 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 KERINGUNSPADR 110 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and KERINGUNSPADR 110 EO, you can compare the effects of market volatilities on Xtrackers ShortDAX and KERINGUNSPADR 110 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 KERINGUNSPADR 110. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and KERINGUNSPADR 110.
Diversification Opportunities for Xtrackers ShortDAX and KERINGUNSPADR 110
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and KERINGUNSPADR is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and KERINGUNSPADR 110 EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERINGUNSPADR 110 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 KERINGUNSPADR 110. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERINGUNSPADR 110 has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and KERINGUNSPADR 110 go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and KERINGUNSPADR 110
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the KERINGUNSPADR 110. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.8 times less risky than KERINGUNSPADR 110. The etf trades about -0.41 of its potential returns per unit of risk. The KERINGUNSPADR 110 EO is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,239 in KERINGUNSPADR 110 EO on October 28, 2024 and sell it today you would earn a total of 241.00 from holding KERINGUNSPADR 110 EO or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.44% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. KERINGUNSPADR 110 EO
Performance |
| Timeline |
| Xtrackers ShortDAX |
| KERINGUNSPADR 110 |
Xtrackers ShortDAX and KERINGUNSPADR 110 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and KERINGUNSPADR 110
The main advantage of trading using opposite Xtrackers ShortDAX and KERINGUNSPADR 110 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, KERINGUNSPADR 110 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 KERINGUNSPADR 110 will offset losses from the drop in KERINGUNSPADR 110'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 |
| KERINGUNSPADR 110 vs. LVMH Mot Hennessy | KERINGUNSPADR 110 vs. LVMH Mot Hennessy | KERINGUNSPADR 110 vs. LVMH Mot Hennessy | KERINGUNSPADR 110 vs. Herms International Socit |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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