Correlation Between Xtrackers ShortDAX and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and SINGAPORE POST 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 SINGAPORE POST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and SINGAPORE POST, you can compare the effects of market volatilities on Xtrackers ShortDAX and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and SINGAPORE POST.
Diversification Opportunities for Xtrackers ShortDAX and SINGAPORE POST
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and SINGAPORE is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and SINGAPORE POST go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and SINGAPORE POST
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the SINGAPORE POST. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.41 times less risky than SINGAPORE POST. The etf trades about -0.05 of its potential returns per unit of risk. The SINGAPORE POST is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 34.00 in SINGAPORE POST on August 30, 2024 and sell it today you would earn a total of 6.00 from holding SINGAPORE POST or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. SINGAPORE POST
Performance |
| Timeline |
| Xtrackers ShortDAX |
| SINGAPORE POST |
Xtrackers ShortDAX and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and SINGAPORE POST
The main advantage of trading using opposite Xtrackers ShortDAX and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST'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 |
| SINGAPORE POST vs. SYSTEMAIR AB | SINGAPORE POST vs. Air New Zealand | SINGAPORE POST vs. Pentair plc | SINGAPORE POST vs. FORWARD AIR P |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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