Correlation Between Xtrackers and RAYTHEON
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By analyzing existing cross correlation between Xtrackers SP 500 and RAYTHEON TECHNOLOGIES PORATION, you can compare the effects of market volatilities on Xtrackers and RAYTHEON 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 with a short position of RAYTHEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and RAYTHEON.
Diversification Opportunities for Xtrackers and RAYTHEON
Very good diversification
The 3 months correlation between Xtrackers and RAYTHEON is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers SP 500 and RAYTHEON TECHNOLOGIES PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RAYTHEON TECHNOLOGIES and Xtrackers 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 SP 500 are associated (or correlated) with RAYTHEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RAYTHEON TECHNOLOGIES has no effect on the direction of Xtrackers i.e., Xtrackers and RAYTHEON go up and down completely randomly.
Pair Corralation between Xtrackers and RAYTHEON
Given the investment horizon of 90 days Xtrackers is expected to generate 1.0 times less return on investment than RAYTHEON. But when comparing it to its historical volatility, Xtrackers SP 500 is 1.47 times less risky than RAYTHEON. It trades about 0.07 of its potential returns per unit of risk. RAYTHEON TECHNOLOGIES PORATION is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,180 in RAYTHEON TECHNOLOGIES PORATION on September 24, 2024 and sell it today you would earn a total of 388.00 from holding RAYTHEON TECHNOLOGIES PORATION or generate 6.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 89.68% |
Values | Daily Returns |
Xtrackers SP 500 vs. RAYTHEON TECHNOLOGIES PORATION
Performance |
Timeline |
Xtrackers SP 500 |
RAYTHEON TECHNOLOGIES |
Xtrackers and RAYTHEON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers and RAYTHEON
The main advantage of trading using opposite Xtrackers and RAYTHEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, RAYTHEON 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 RAYTHEON will offset losses from the drop in RAYTHEON's long position.Xtrackers vs. SPDR SP 500 | Xtrackers vs. iShares Core SP | Xtrackers vs. Vanguard Dividend Appreciation | Xtrackers vs. Vanguard Large Cap Index |
RAYTHEON vs. GMS Inc | RAYTHEON vs. CVW CleanTech | RAYTHEON vs. Cleantech Power Corp | RAYTHEON vs. Brenmiller Energy Ltd |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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