Correlation Between Xtrackers ShortDAX and SCANSOURCE (SC3SG)
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and SCANSOURCE, you can compare the effects of market volatilities on Xtrackers ShortDAX and SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and SCANSOURCE (SC3SG).
Diversification Opportunities for Xtrackers ShortDAX and SCANSOURCE (SC3SG)
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and SCANSOURCE is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and SCANSOURCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANSOURCE (SC3SG) has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and SCANSOURCE (SC3SG) go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and SCANSOURCE (SC3SG)
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the SCANSOURCE (SC3SG). But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.38 times less risky than SCANSOURCE (SC3SG). The etf trades about -0.06 of its potential returns per unit of risk. The SCANSOURCE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,020 in SCANSOURCE on October 23, 2024 and sell it today you would earn a total of 1,800 from holding SCANSOURCE or generate 59.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. SCANSOURCE
Performance |
| Timeline |
| Xtrackers ShortDAX |
| SCANSOURCE (SC3SG) |
Xtrackers ShortDAX and SCANSOURCE (SC3SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and SCANSOURCE (SC3SG)
The main advantage of trading using opposite Xtrackers ShortDAX and SCANSOURCE (SC3SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, SCANSOURCE (SC3SG) 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 SCANSOURCE (SC3SG) will offset losses from the drop in SCANSOURCE (SC3SG)'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 |
| SCANSOURCE (SC3SG) vs. ASM Pacific Technology | SCANSOURCE (SC3SG) vs. Casio Computer CoLtd | SCANSOURCE (SC3SG) vs. Ross Stores | SCANSOURCE (SC3SG) vs. RETAIL FOOD GROUP |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |