Correlation Between Xtrackers ShortDAX and Sixt SE
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Sixt SE 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 Sixt SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Sixt SE, you can compare the effects of market volatilities on Xtrackers ShortDAX and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Sixt SE.
Diversification Opportunities for Xtrackers ShortDAX and Sixt SE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Sixt is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Sixt SE go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Sixt SE
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Sixt SE. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.21 times less risky than Sixt SE. The etf trades about -0.07 of its potential returns per unit of risk. The Sixt SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,230 in Sixt SE on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Sixt SE or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Sixt SE
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Sixt SE |
Xtrackers ShortDAX and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Sixt SE
The main advantage of trading using opposite Xtrackers ShortDAX and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE'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 |
| Sixt SE vs. Zijin Mining Group | Sixt SE vs. Perseus Mining Limited | Sixt SE vs. United Insurance Holdings | Sixt SE vs. Insurance Australia 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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