Correlation Between Xtrackers California and HJEN
Can any of the company-specific risk be diversified away by investing in both Xtrackers California and HJEN 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 California and HJEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers California Municipal and HJEN, you can compare the effects of market volatilities on Xtrackers California and HJEN 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 California with a short position of HJEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers California and HJEN.
Diversification Opportunities for Xtrackers California and HJEN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and HJEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers California Municipal and HJEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HJEN and Xtrackers California 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 California Municipal are associated (or correlated) with HJEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HJEN has no effect on the direction of Xtrackers California i.e., Xtrackers California and HJEN go up and down completely randomly.
Pair Corralation between Xtrackers California and HJEN
If you would invest (100.00) in HJEN on December 29, 2024 and sell it today you would earn a total of 100.00 from holding HJEN 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 California Municipal vs. HJEN
Performance |
Timeline |
Xtrackers California |
HJEN |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xtrackers California and HJEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers California and HJEN
The main advantage of trading using opposite Xtrackers California and HJEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers California position performs unexpectedly, HJEN 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 HJEN will offset losses from the drop in HJEN's long position.Xtrackers California vs. VCRM | Xtrackers California vs. IQ MacKay Municipal | Xtrackers California vs. IQ MacKay Municipal | Xtrackers California vs. ALPS Intermediate Municipal |
HJEN vs. iShares Energy ETF | HJEN vs. iShares Basic Materials | HJEN vs. iShares Global Energy | HJEN vs. iShares Cohen Steers |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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