Correlation Between Amundi 3 and Xtrackers ShortDAX

Can any of the company-specific risk be diversified away by investing in both Amundi 3 and Xtrackers ShortDAX 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 Amundi 3 and Xtrackers ShortDAX into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amundi 3 Mois and Xtrackers ShortDAX, you can compare the effects of market volatilities on Amundi 3 and Xtrackers ShortDAX 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 Amundi 3 with a short position of Xtrackers ShortDAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi 3 and Xtrackers ShortDAX.

Diversification Opportunities for Amundi 3 and Xtrackers ShortDAX

-0.95

Correlation Coefficient

Amundi 3  Xtrackers ShortDAX

Pay attention - limited upside

The 3 months correlation between Amundi and Xtrackers is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Amundi 3 Mois and Xtrackers ShortDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers ShortDAX and Amundi 3 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 Amundi 3 Mois are associated (or correlated) with Xtrackers ShortDAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers ShortDAX has no effect on the direction of Amundi 3 i.e., Amundi 3 and Xtrackers ShortDAX go up and down completely randomly.

Pair Corralation between Amundi 3 and Xtrackers ShortDAX

Assuming the 90 days trading horizon Amundi 3 Mois is expected to generate 0.0 times more return on investment than Xtrackers ShortDAX. However, Amundi 3 Mois is 250.56 times less risky than Xtrackers ShortDAX. It trades about 1.36 of its potential returns per unit of risk. Xtrackers ShortDAX is currently generating about -0.22 per unit of risk. If you would invest  10,527  in Amundi 3 Mois on December 26, 2024 and sell it today you would earn a total of  67.00  from holding Amundi 3 Mois or generate 0.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Amundi 3 Mois  vs.  Xtrackers ShortDAX

Amundi 3 Mois

Risk-Adjusted Performance

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Amundi 3 Mois are ranked lower than 96 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Amundi 3 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Xtrackers ShortDAX

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xtrackers ShortDAX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Pair Trading with Amundi 3 and Xtrackers ShortDAX

The main advantage of trading using opposite Amundi 3 and Xtrackers ShortDAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi 3 position performs unexpectedly, Xtrackers ShortDAX 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 ShortDAX will offset losses from the drop in Xtrackers ShortDAX's long position.

The idea behind Amundi 3 Mois and Xtrackers ShortDAX pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.