Correlation Between Xtrackers ShortDAX and Citigroup
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By analyzing existing cross correlation between Xtrackers ShortDAX and Citigroup, you can compare the effects of market volatilities on Xtrackers ShortDAX and Citigroup 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 Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Citigroup.
Diversification Opportunities for Xtrackers ShortDAX and Citigroup
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Citigroup is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Citigroup go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Citigroup
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Citigroup. In addition to that, Xtrackers ShortDAX is 1.36 times more volatile than Citigroup. It trades about -0.16 of its total potential returns per unit of risk. Citigroup is currently generating about 0.56 per unit of volatility. If you would invest 6,775 in Citigroup on April 22, 2025 and sell it today you would earn a total of 1,246 from holding Citigroup or generate 18.39% 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. Citigroup
Performance |
Timeline |
Xtrackers ShortDAX |
Citigroup |
Xtrackers ShortDAX and Citigroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers ShortDAX and Citigroup
The main advantage of trading using opposite Xtrackers ShortDAX and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup'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 |
Citigroup vs. JPMorgan Chase Co | Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. Mitsubishi UFJ Financial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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