Correlation Between Xtrackers ShortDAX and ELEMENT FLEET

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

By analyzing existing cross correlation between Xtrackers ShortDAX and ELEMENT FLEET MGMT, you can compare the effects of market volatilities on Xtrackers ShortDAX and ELEMENT FLEET 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 ELEMENT FLEET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and ELEMENT FLEET.

Diversification Opportunities for Xtrackers ShortDAX and ELEMENT FLEET

-0.44

Correlation Coefficient

Xtrackers ShortDAX  ELEMENT FLEET

Very good diversification

The 3 months correlation between Xtrackers and ELEMENT is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and ELEMENT FLEET MGMT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELEMENT FLEET MGMT 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 ELEMENT FLEET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELEMENT FLEET MGMT has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and ELEMENT FLEET go up and down completely randomly.

Pair Corralation between Xtrackers ShortDAX and ELEMENT FLEET

Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the ELEMENT FLEET. In addition to that, Xtrackers ShortDAX is 1.6 times more volatile than ELEMENT FLEET MGMT. It trades about -0.2 of its total potential returns per unit of risk. ELEMENT FLEET MGMT is currently generating about 0.21 per unit of volatility. If you would invest  1,893  in ELEMENT FLEET MGMT on April 21, 2025 and sell it today you would earn a total of  307.00  from holding ELEMENT FLEET MGMT or generate 16.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Xtrackers ShortDAX  vs.  ELEMENT FLEET MGMT

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 August 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

ELEMENT FLEET MGMT

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ELEMENT FLEET MGMT are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ELEMENT FLEET reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xtrackers ShortDAX and ELEMENT FLEET

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

The idea behind Xtrackers ShortDAX and ELEMENT FLEET MGMT 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.