Correlation Between Xtrackers ShortDAX and Sany Heavy

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

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

Diversification Opportunities for Xtrackers ShortDAX and Sany Heavy

-0.41

Correlation Coefficient

Xtrackers ShortDAX  Sany Heavy

Very good diversification

The 3 months correlation between Xtrackers and Sany is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Sany Heavy Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Equipment 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Equipment has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Sany Heavy go up and down completely randomly.

Pair Corralation between Xtrackers ShortDAX and Sany Heavy

Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Sany Heavy. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers ShortDAX is 5.96 times less risky than Sany Heavy. The etf trades about -0.15 of its potential returns per unit of risk. The Sany Heavy Equipment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  61.00  in Sany Heavy Equipment on April 24, 2025 and sell it today you would earn a total of  21.00  from holding Sany Heavy Equipment or generate 34.43% return on investment over 90 days.

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

Xtrackers ShortDAX  vs.  Sany Heavy Equipment

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.

Sany Heavy Equipment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sany Heavy Equipment are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sany Heavy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Xtrackers ShortDAX and Sany Heavy

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

The idea behind Xtrackers ShortDAX and Sany Heavy Equipment 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.