Correlation Between Xtrackers ShortDAX and Citigroup
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By analyzing existing cross correlation between Xtrackers ShortDAX and Citigroup, you can compare the effects of market volatilities on Xtrackers ShortDAX and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Citigroup.
Diversification Opportunities for Xtrackers ShortDAX and Citigroup
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Citigroup is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Citigroup go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Citigroup
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Citigroup. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.75 times less risky than Citigroup. The etf trades about -0.07 of its potential returns per unit of risk. The Citigroup is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,892 in Citigroup on September 1, 2024 and sell it today you would earn a total of 825.00 from holding Citigroup or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Citigroup
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Citigroup |
Xtrackers ShortDAX and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Citigroup
The main advantage of trading using opposite Xtrackers ShortDAX and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup'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 |
| Citigroup vs. The Hanover Insurance | Citigroup vs. Safety Insurance Group | Citigroup vs. Uber Technologies | Citigroup vs. NetSol Technologies |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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