Correlation Between Xtrackers ShortDAX and JDS UNIPHASE
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and JDS UNIPHASE 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 JDS UNIPHASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and JDS UNIPHASE, you can compare the effects of market volatilities on Xtrackers ShortDAX and JDS UNIPHASE 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 JDS UNIPHASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and JDS UNIPHASE.
Diversification Opportunities for Xtrackers ShortDAX and JDS UNIPHASE
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and JDS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and JDS UNIPHASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JDS UNIPHASE 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 JDS UNIPHASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JDS UNIPHASE has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and JDS UNIPHASE go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and JDS UNIPHASE
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the JDS UNIPHASE. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.46 times less risky than JDS UNIPHASE. The etf trades about -0.14 of its potential returns per unit of risk. The JDS UNIPHASE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 900.00 in JDS UNIPHASE on September 3, 2024 and sell it today you would earn a total of 30.00 from holding JDS UNIPHASE or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. JDS UNIPHASE
Performance |
| Timeline |
| Xtrackers ShortDAX |
| JDS UNIPHASE |
Xtrackers ShortDAX and JDS UNIPHASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and JDS UNIPHASE
The main advantage of trading using opposite Xtrackers ShortDAX and JDS UNIPHASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, JDS UNIPHASE 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 JDS UNIPHASE will offset losses from the drop in JDS UNIPHASE'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 |
| JDS UNIPHASE vs. Martin Marietta Materials | JDS UNIPHASE vs. Computer And Technologies | JDS UNIPHASE vs. Japan Tobacco | JDS UNIPHASE vs. Plastic Omnium |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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