Correlation Between Xtrackers ShortDAX and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Samsung Electronics Co, you can compare the effects of market volatilities on Xtrackers ShortDAX and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Samsung Electronics.
Diversification Opportunities for Xtrackers ShortDAX and Samsung Electronics
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xtrackers and Samsung is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Samsung Electronics go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Samsung Electronics
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to generate 0.57 times more return on investment than Samsung Electronics. However, Xtrackers ShortDAX is 1.75 times less risky than Samsung Electronics. It trades about 0.08 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 82.00 in Xtrackers ShortDAX on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Xtrackers ShortDAX or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Samsung Electronics Co
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Samsung Electronics |
Xtrackers ShortDAX and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Samsung Electronics
The main advantage of trading using opposite Xtrackers ShortDAX and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
| Samsung Electronics vs. Amazon Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tesla Inc | Samsung Electronics vs. Alphabet Class A |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |