Correlation Between Xtrackers Harvest and CHIX

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

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

Diversification Opportunities for Xtrackers Harvest and CHIX

0.0

Correlation Coefficient

Xtrackers Harvest  CHIX

Pay attention - limited upside

The 3 months correlation between Xtrackers and CHIX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and CHIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIX and Xtrackers Harvest 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 Harvest CSI are associated (or correlated) with CHIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIX has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and CHIX go up and down completely randomly.

Pair Corralation between Xtrackers Harvest and CHIX

If you would invest (100.00) in CHIX on December 28, 2024 and sell it today you would earn a total of  100.00  from holding CHIX or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Xtrackers Harvest CSI  vs.  CHIX

Xtrackers Harvest CSI

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xtrackers Harvest CSI has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Xtrackers Harvest is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

CHIX

Risk-Adjusted Performance

Very Weak

Over the last 90 days CHIX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, CHIX is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Xtrackers Harvest and CHIX

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

The idea behind Xtrackers Harvest CSI and CHIX 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.