Correlation Between Xtrackers MSCI and Autoneum Holding
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and Autoneum Holding 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 MSCI and Autoneum Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers MSCI China and Autoneum Holding AG, you can compare the effects of market volatilities on Xtrackers MSCI and Autoneum Holding 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 MSCI with a short position of Autoneum Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and Autoneum Holding.
Diversification Opportunities for Xtrackers MSCI and Autoneum Holding
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Autoneum is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI China and Autoneum Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autoneum Holding and Xtrackers MSCI 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 MSCI China are associated (or correlated) with Autoneum Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autoneum Holding has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and Autoneum Holding go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and Autoneum Holding
Assuming the 90 days trading horizon Xtrackers MSCI China is expected to under-perform the Autoneum Holding. In addition to that, Xtrackers MSCI is 1.46 times more volatile than Autoneum Holding AG. It trades about -0.06 of its total potential returns per unit of risk. Autoneum Holding AG is currently generating about 0.19 per unit of volatility. If you would invest 10,740 in Autoneum Holding AG on November 7, 2024 and sell it today you would earn a total of 1,620 from holding Autoneum Holding AG or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.21% |
| Values | Daily Returns |
Xtrackers MSCI China vs. Autoneum Holding AG
Performance |
| Timeline |
| Xtrackers MSCI China |
| Autoneum Holding |
Xtrackers MSCI and Autoneum Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and Autoneum Holding
The main advantage of trading using opposite Xtrackers MSCI and Autoneum Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, Autoneum Holding 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 Autoneum Holding will offset losses from the drop in Autoneum Holding's long position.| Xtrackers MSCI vs. UBSFund Solutions MSCI | Xtrackers MSCI vs. Vanguard SP 500 | Xtrackers MSCI vs. iShares VII PLC | Xtrackers MSCI vs. iShares Core SP |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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