Correlation Between Highway Hlds and XTRACKERS

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Can any of the company-specific risk be diversified away by investing in both Highway Hlds and XTRACKERS 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 Highway Hlds and XTRACKERS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway Hlds and XTRACKERS X WORLD, you can compare the effects of market volatilities on Highway Hlds and XTRACKERS 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 Highway Hlds with a short position of XTRACKERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Hlds and XTRACKERS.

Diversification Opportunities for Highway Hlds and XTRACKERS

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Highway and XTRACKERS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Highway Hlds and XTRACKERS X WORLD SWAP 1C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRACKERS X WORLD and Highway Hlds 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 Highway Hlds are associated (or correlated) with XTRACKERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRACKERS X WORLD has no effect on the direction of Highway Hlds i.e., Highway Hlds and XTRACKERS go up and down completely randomly.

Pair Corralation between Highway Hlds and XTRACKERS

If you would invest (100.00)  in XTRACKERS X WORLD on September 1, 2022 and sell it today you would earn a total of  100.00  from holding XTRACKERS X WORLD or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Highway Hlds  vs.  XTRACKERS X WORLD SWAP 1C

 Performance (%) 
       Timeline  
Highway Hlds 
Highway Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Highway Hlds are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical indicators, Highway Hlds is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Highway Price Channel

XTRACKERS X WORLD 
XTRACKERS Performance
0 of 100
Over the last 90 days XTRACKERS X WORLD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady fundamental indicators, XTRACKERS is not utilizing all of its potentials. The new stock price chaos, may contribute to medium-term losses for the stakeholders.

Highway Hlds and XTRACKERS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Highway Hlds and XTRACKERS

The main advantage of trading using opposite Highway Hlds and XTRACKERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Hlds position performs unexpectedly, XTRACKERS 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 XTRACKERS will offset losses from the drop in XTRACKERS's long position.
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The idea behind Highway Hlds and XTRACKERS X WORLD 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.
XTRACKERS vs. XTRACKERS PUBLIC LIMITED
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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