Correlation Between Nine Energy and Xtrackers MSCI
Can any of the company-specific risk be diversified away by investing in both Nine Energy and Xtrackers MSCI 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 Nine Energy and Xtrackers MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Energy Service and Xtrackers MSCI All, you can compare the effects of market volatilities on Nine Energy and Xtrackers MSCI 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 Nine Energy with a short position of Xtrackers MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Energy and Xtrackers MSCI.
Diversification Opportunities for Nine Energy and Xtrackers MSCI
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nine and Xtrackers is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Nine Energy Service and Xtrackers MSCI All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers MSCI All and Nine Energy 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 Nine Energy Service are associated (or correlated) with Xtrackers MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers MSCI All has no effect on the direction of Nine Energy i.e., Nine Energy and Xtrackers MSCI go up and down completely randomly.
Pair Corralation between Nine Energy and Xtrackers MSCI
If you would invest 85.00 in Nine Energy Service on August 29, 2024 and sell it today you would earn a total of 74.00 from holding Nine Energy Service or generate 87.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Nine Energy Service vs. Xtrackers MSCI All
Performance |
| Timeline |
| Nine Energy Service |
| Xtrackers MSCI All |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nine Energy and Xtrackers MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Energy and Xtrackers MSCI
The main advantage of trading using opposite Nine Energy and Xtrackers MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Energy position performs unexpectedly, Xtrackers MSCI 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 Xtrackers MSCI will offset losses from the drop in Xtrackers MSCI's long position.| Nine Energy vs. Liberty Oilfield Services | Nine Energy vs. ProFrac Holding Corp | Nine Energy vs. Helix Energy Solutions | Nine Energy vs. Newpark Resources |
| Xtrackers MSCI vs. Formidable Fortress ETF | Xtrackers MSCI vs. VanEck Vectors ETF | Xtrackers MSCI vs. Sonida Senior Living | Xtrackers MSCI vs. China Yuchai International |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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