Correlation Between Xtrackers ShortDAX and ANDREW PELLER

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

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

Diversification Opportunities for Xtrackers ShortDAX and ANDREW PELLER

-0.39

Correlation Coefficient

Xtrackers ShortDAX  ANDREW PELLER

Very good diversification

The 3 months correlation between Xtrackers and ANDREW is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and ANDREW PELLER LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANDREW PELLER LTD 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 ANDREW PELLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANDREW PELLER LTD has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and ANDREW PELLER go up and down completely randomly.

Pair Corralation between Xtrackers ShortDAX and ANDREW PELLER

Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the ANDREW PELLER. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 1.3 times less risky than ANDREW PELLER. The etf trades about -0.13 of its potential returns per unit of risk. The ANDREW PELLER LTD is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  277.00  in ANDREW PELLER LTD on April 24, 2025 and sell it today you would earn a total of  41.00  from holding ANDREW PELLER LTD or generate 14.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Xtrackers ShortDAX  vs.  ANDREW PELLER LTD

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.

ANDREW PELLER LTD

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANDREW PELLER LTD are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ANDREW PELLER reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xtrackers ShortDAX and ANDREW PELLER

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

The idea behind Xtrackers ShortDAX and ANDREW PELLER LTD 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.