Correlation Between Xtrackers Harvest and GLCN
Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and GLCN 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 Harvest and GLCN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Harvest CSI and GLCN, you can compare the effects of market volatilities on Xtrackers Harvest and GLCN 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 Harvest with a short position of GLCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and GLCN.
Diversification Opportunities for Xtrackers Harvest and GLCN
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and GLCN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and GLCN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLCN and Xtrackers Harvest 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 Harvest CSI are associated (or correlated) with GLCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLCN has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and GLCN go up and down completely randomly.
Pair Corralation between Xtrackers Harvest and GLCN
Given the investment horizon of 90 days Xtrackers Harvest CSI is expected to generate 1.35 times more return on investment than GLCN. However, Xtrackers Harvest is 1.35 times more volatile than GLCN. It trades about 0.01 of its potential returns per unit of risk. GLCN is currently generating about -0.05 per unit of risk. If you would invest 2,753 in Xtrackers Harvest CSI on September 14, 2024 and sell it today you would lose (43.00) from holding Xtrackers Harvest CSI or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.89% |
| Values | Daily Returns |
Xtrackers Harvest CSI vs. GLCN
Performance |
| Timeline |
| Xtrackers Harvest CSI |
| GLCN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xtrackers Harvest and GLCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Harvest and GLCN
The main advantage of trading using opposite Xtrackers Harvest and GLCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, GLCN 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 GLCN will offset losses from the drop in GLCN's long position.| Xtrackers Harvest vs. iShares MSCI China | Xtrackers Harvest vs. Xtrackers Harvest CSI | Xtrackers Harvest vs. Direxion Daily CSI | Xtrackers Harvest vs. KraneShares CSI China |
| GLCN vs. KraneShares CSI China | GLCN vs. Invesco China Technology | GLCN vs. iShares MSCI India | GLCN vs. Xtrackers Harvest CSI |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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