Correlation Between Xtrackers ShortDAX and Sanmina
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Sanmina 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 Sanmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Sanmina, you can compare the effects of market volatilities on Xtrackers ShortDAX and Sanmina 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 Sanmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Sanmina.
Diversification Opportunities for Xtrackers ShortDAX and Sanmina
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Sanmina is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Sanmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanmina 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 Sanmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanmina has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Sanmina go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Sanmina
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Sanmina. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.79 times less risky than Sanmina. The etf trades about -0.09 of its potential returns per unit of risk. The Sanmina is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,560 in Sanmina on September 14, 2024 and sell it today you would earn a total of 3,158 from holding Sanmina or generate 69.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.27% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Sanmina
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Sanmina |
Xtrackers ShortDAX and Sanmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Sanmina
The main advantage of trading using opposite Xtrackers ShortDAX and Sanmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Sanmina 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 Sanmina will offset losses from the drop in Sanmina'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 |
| Sanmina vs. Datang International Power | Sanmina vs. Japan Asia Investment | Sanmina vs. Chuangs China Investments | Sanmina vs. HK Electric Investments |
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 Stocks Directory module to find actively traded stocks across global markets.
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