Correlation Between Xtrackers LevDAX and UNITED URBAN
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and UNITED URBAN 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 LevDAX and UNITED URBAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and UNITED URBAN INV, you can compare the effects of market volatilities on Xtrackers LevDAX and UNITED URBAN 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 LevDAX with a short position of UNITED URBAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and UNITED URBAN.
Diversification Opportunities for Xtrackers LevDAX and UNITED URBAN
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and UNITED is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and UNITED URBAN INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED URBAN INV and Xtrackers LevDAX 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 LevDAX are associated (or correlated) with UNITED URBAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED URBAN INV has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and UNITED URBAN go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and UNITED URBAN
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 1.23 times more return on investment than UNITED URBAN. However, Xtrackers LevDAX is 1.23 times more volatile than UNITED URBAN INV. It trades about 0.06 of its potential returns per unit of risk. UNITED URBAN INV is currently generating about -0.03 per unit of risk. If you would invest 12,430 in Xtrackers LevDAX on August 31, 2024 and sell it today you would earn a total of 5,992 from holding Xtrackers LevDAX or generate 48.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Xtrackers LevDAX vs. UNITED URBAN INV
Performance |
| Timeline |
| Xtrackers LevDAX |
| UNITED URBAN INV |
Xtrackers LevDAX and UNITED URBAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and UNITED URBAN
The main advantage of trading using opposite Xtrackers LevDAX and UNITED URBAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, UNITED URBAN 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 UNITED URBAN will offset losses from the drop in UNITED URBAN's long position.| Xtrackers LevDAX vs. Xtrackers II Global | Xtrackers LevDAX vs. Xtrackers FTSE | Xtrackers LevDAX vs. Xtrackers SP 500 | Xtrackers LevDAX vs. Xtrackers MSCI |
| UNITED URBAN vs. USWE SPORTS AB | UNITED URBAN vs. Playa Hotels Resorts | UNITED URBAN vs. YATRA ONLINE DL 0001 | UNITED URBAN vs. PLAYTECH |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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