Correlation Between Xtrackers ShortDAX and Kasikornbank Public
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Kasikornbank Public 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 Kasikornbank Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Kasikornbank Public, you can compare the effects of market volatilities on Xtrackers ShortDAX and Kasikornbank Public 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 Kasikornbank Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Kasikornbank Public.
Diversification Opportunities for Xtrackers ShortDAX and Kasikornbank Public
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Kasikornbank is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Kasikornbank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasikornbank Public 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 Kasikornbank Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kasikornbank Public has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Kasikornbank Public go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Kasikornbank Public
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Kasikornbank Public. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 2.9 times less risky than Kasikornbank Public. The etf trades about -0.05 of its potential returns per unit of risk. The Kasikornbank Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Kasikornbank Public on September 4, 2024 and sell it today you would earn a total of 190.00 from holding Kasikornbank Public or generate 87.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Kasikornbank Public
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Kasikornbank Public |
Xtrackers ShortDAX and Kasikornbank Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Kasikornbank Public
The main advantage of trading using opposite Xtrackers ShortDAX and Kasikornbank Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Kasikornbank Public 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 Kasikornbank Public will offset losses from the drop in Kasikornbank Public'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 |
| Kasikornbank Public vs. NAKED WINES PLC | Kasikornbank Public vs. SHIP HEALTHCARE HLDGINC | Kasikornbank Public vs. Diamondrock Hospitality Co | Kasikornbank Public vs. DiamondRock Hospitality |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |