Correlation Between Xtrackers Switzerland and PIMCO Euro
Can any of the company-specific risk be diversified away by investing in both Xtrackers Switzerland and PIMCO Euro 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 Switzerland and PIMCO Euro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Switzerland UCITS and PIMCO Euro Short, you can compare the effects of market volatilities on Xtrackers Switzerland and PIMCO Euro 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 Switzerland with a short position of PIMCO Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Switzerland and PIMCO Euro.
Diversification Opportunities for Xtrackers Switzerland and PIMCO Euro
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and PIMCO is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Switzerland UCITS and PIMCO Euro Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Euro Short and Xtrackers Switzerland 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 Switzerland UCITS are associated (or correlated) with PIMCO Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Euro Short has no effect on the direction of Xtrackers Switzerland i.e., Xtrackers Switzerland and PIMCO Euro go up and down completely randomly.
Pair Corralation between Xtrackers Switzerland and PIMCO Euro
Assuming the 90 days trading horizon Xtrackers Switzerland UCITS is expected to under-perform the PIMCO Euro. In addition to that, Xtrackers Switzerland is 24.9 times more volatile than PIMCO Euro Short. It trades about -0.03 of its total potential returns per unit of risk. PIMCO Euro Short is currently generating about 0.59 per unit of volatility. If you would invest 10,278 in PIMCO Euro Short on September 13, 2024 and sell it today you would earn a total of 34.00 from holding PIMCO Euro Short or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers Switzerland UCITS vs. PIMCO Euro Short
Performance |
| Timeline |
| Xtrackers Switzerland |
| PIMCO Euro Short |
Xtrackers Switzerland and PIMCO Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Switzerland and PIMCO Euro
The main advantage of trading using opposite Xtrackers Switzerland and PIMCO Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Switzerland position performs unexpectedly, PIMCO Euro 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 PIMCO Euro will offset losses from the drop in PIMCO Euro's long position.| Xtrackers Switzerland vs. Xtrackers MSCI USA | Xtrackers Switzerland vs. Xtrackers USD Corporate | Xtrackers Switzerland vs. Xtrackers MSCI AC | Xtrackers Switzerland vs. Xtrackers MSCI World |
| PIMCO Euro vs. PIMCO Short Term High | PIMCO Euro vs. PIMCO Short Term High | PIMCO Euro vs. PIMCO Euro Short Term | PIMCO Euro vs. PIMCO Low Duration |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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