Correlation Between Xtrackers ShortDAX and SISF BRIC
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and SISF BRIC 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 SISF BRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and SISF BRIC AC, you can compare the effects of market volatilities on Xtrackers ShortDAX and SISF BRIC 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 SISF BRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and SISF BRIC.
Diversification Opportunities for Xtrackers ShortDAX and SISF BRIC
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and SISF is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and SISF BRIC AC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SISF BRIC AC 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 SISF BRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SISF BRIC AC has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and SISF BRIC go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and SISF BRIC
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the SISF BRIC. In addition to that, Xtrackers ShortDAX is 1.33 times more volatile than SISF BRIC AC. It trades about -0.06 of its total potential returns per unit of risk. SISF BRIC AC is currently generating about 0.07 per unit of volatility. If you would invest 18,595 in SISF BRIC AC on August 29, 2024 and sell it today you would earn a total of 2,812 from holding SISF BRIC AC or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 39.29% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. SISF BRIC AC
Performance |
| Timeline |
| Xtrackers ShortDAX |
| SISF BRIC AC |
Xtrackers ShortDAX and SISF BRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and SISF BRIC
The main advantage of trading using opposite Xtrackers ShortDAX and SISF BRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, SISF BRIC 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 SISF BRIC will offset losses from the drop in SISF BRIC'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 |
| SISF BRIC vs. Renaissance Europe C | SISF BRIC vs. Superior Plus Corp | SISF BRIC vs. Origin Agritech | SISF BRIC vs. Identiv |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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