Correlation Between Db X and Global X
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By analyzing existing cross correlation between db x trackers II and Global X Bitcoin, you can compare the effects of market volatilities on Db X and Global X 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 Db X with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Db X and Global X.
Diversification Opportunities for Db X and Global X
Poor diversification
The 3 months correlation between D5BE and Global is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding db x trackers II and Global X Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Bitcoin and Db X 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 db x trackers II are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Bitcoin has no effect on the direction of Db X i.e., Db X and Global X go up and down completely randomly.
Pair Corralation between Db X and Global X
Assuming the 90 days trading horizon Db X is expected to generate 15.47 times less return on investment than Global X. But when comparing it to its historical volatility, db x trackers II is 7.52 times less risky than Global X. It trades about 0.06 of its potential returns per unit of risk. Global X Bitcoin is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,994 in Global X Bitcoin on November 2, 2024 and sell it today you would earn a total of 7,671 from holding Global X Bitcoin or generate 384.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
db x trackers II vs. Global X Bitcoin
Performance |
| Timeline |
| db x trackers |
| Global X Bitcoin |
Db X and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Db X and Global X
The main advantage of trading using opposite Db X and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Db X position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Db X vs. iShares Govt Bond | Db X vs. Amundi MSCI Europe | Db X vs. iShares Global AAA AA | Db X vs. iShares Smart City |
| Global X vs. Global X China | Global X vs. Global X Aave | Global X vs. Global X NASDAQ | Global X vs. Global X Cloud |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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