Correlation Between Xtrackers ShortDAX and Barings Global
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By analyzing existing cross correlation between Xtrackers ShortDAX and Barings Global Umbrella, you can compare the effects of market volatilities on Xtrackers ShortDAX and Barings Global 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 Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Barings Global.
Diversification Opportunities for Xtrackers ShortDAX and Barings Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Barings is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Barings Global Umbrella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Umbrella 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 Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Umbrella has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Barings Global go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and Barings Global
Assuming the 90 days trading horizon Xtrackers ShortDAX is expected to under-perform the Barings Global. In addition to that, Xtrackers ShortDAX is 2.51 times more volatile than Barings Global Umbrella. It trades about -0.14 of its total potential returns per unit of risk. Barings Global Umbrella is currently generating about 0.29 per unit of volatility. If you would invest 712.00 in Barings Global Umbrella on September 4, 2024 and sell it today you would earn a total of 26.00 from holding Barings Global Umbrella or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers ShortDAX vs. Barings Global Umbrella
Performance |
| Timeline |
| Xtrackers ShortDAX |
| Barings Global Umbrella |
Xtrackers ShortDAX and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and Barings Global
The main advantage of trading using opposite Xtrackers ShortDAX and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Barings Global 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 Barings Global will offset losses from the drop in Barings Global's long position.| Xtrackers ShortDAX vs. Xtrackers II Global | Xtrackers ShortDAX vs. Xtrackers FTSE | Xtrackers ShortDAX vs. Xtrackers SP 500 | Xtrackers ShortDAX vs. Xtrackers MSCI |
| Barings Global vs. Lyxor 1 | Barings Global vs. Xtrackers LevDAX | Barings Global vs. Xtrackers ShortDAX | Barings Global vs. Superior Plus Corp |
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