Correlation Between Xtrackers ShortDAX and Allianz SE
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Allianz SE 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 ShortDAX and Allianz SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX and Allianz SE, you can compare the effects of market volatilities on Xtrackers ShortDAX and Allianz SE 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 ShortDAX with a short position of Allianz SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Allianz SE.
Diversification Opportunities for Xtrackers ShortDAX and Allianz SE
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Allianz is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Allianz SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz SE and Xtrackers ShortDAX 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 ShortDAX are associated (or correlated) with Allianz SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz SE has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Allianz SE go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Allianz SE
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Allianz SE. In addition to that, Xtrackers ShortDAX is 1.7 times more volatile than Allianz SE. It trades about -0.08 of its total potential returns per unit of risk. Allianz SE is currently generating about 0.04 per unit of volatility. If you would invest 29,150 in Allianz SE on October 8, 2024 and sell it today you would earn a total of 560.00 from holding Allianz SE or generate 1.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xtrackers ShortDAX vs. Allianz SE
Performance |
Timeline |
Xtrackers ShortDAX |
Allianz SE |
Xtrackers ShortDAX and Allianz SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers ShortDAX and Allianz SE
The main advantage of trading using opposite Xtrackers ShortDAX and Allianz SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Allianz SE 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 Allianz SE will offset losses from the drop in Allianz SE's long position.Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
Allianz SE vs. GRIFFIN MINING LTD | Allianz SE vs. CeoTronics AG | Allianz SE vs. FIREWEED METALS P | Allianz SE vs. Perseus Mining Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |