Xtrackers ShortDAX (Germany) Market Value

Symbol

Xtrackers

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Xtrackers ShortDAX's etf what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Xtrackers ShortDAX.

Xtrackers ShortDAX Upside/Downside Indicators

Xtrackers ShortDAX Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Xtrackers ShortDAX's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Xtrackers ShortDAX's standard deviation. In reality, there are many statistical measures that can use Xtrackers ShortDAX historical prices to predict the future Xtrackers ShortDAX's volatility.

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Xtrackers ShortDAX's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.

Autocorrelation, which is Xtrackers ShortDAX etf's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Xtrackers ShortDAX's etf expected returns. We can calculate the autocorrelation of Xtrackers ShortDAX returns to help us make a trade decision. For example, suppose you find that Xtrackers ShortDAX has exhibited high autocorrelation historically, and you observe that the etf is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Xtrackers ShortDAX etf is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Xtrackers ShortDAX etf is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Xtrackers ShortDAX etf over time.

When evaluating Xtrackers ShortDAX's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Xtrackers ShortDAX etf have on its future price. Xtrackers ShortDAX autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Xtrackers ShortDAX autocorrelation shows the relationship between Xtrackers ShortDAX etf current value and its past values and can show if there is a momentum factor associated with investing in Xtrackers ShortDAX.

Xtrackers ShortDAX financial ratios help investors to determine whether Xtrackers Etf is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Xtrackers with respect to the benefits of owning Xtrackers ShortDAX security.