Correlation Between Xtrackers LevDAX and Dis Fastigheter
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and Dis Fastigheter 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 Dis Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and Dis Fastigheter AB, you can compare the effects of market volatilities on Xtrackers LevDAX and Dis Fastigheter 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 Dis Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Dis Fastigheter.
Diversification Opportunities for Xtrackers LevDAX and Dis Fastigheter
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Dis is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB 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 Dis Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and Dis Fastigheter go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and Dis Fastigheter
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 0.94 times more return on investment than Dis Fastigheter. However, Xtrackers LevDAX is 1.06 times less risky than Dis Fastigheter. It trades about -0.14 of its potential returns per unit of risk. Dis Fastigheter AB is currently generating about -0.15 per unit of risk. If you would invest 19,468 in Xtrackers LevDAX on August 29, 2024 and sell it today you would lose (1,046) from holding Xtrackers LevDAX or give up 5.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers LevDAX vs. Dis Fastigheter AB
Performance |
| Timeline |
| Xtrackers LevDAX |
| Dis Fastigheter AB |
Xtrackers LevDAX and Dis Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and Dis Fastigheter
The main advantage of trading using opposite Xtrackers LevDAX and Dis Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, Dis Fastigheter 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 Dis Fastigheter will offset losses from the drop in Dis Fastigheter'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 |
| Dis Fastigheter vs. Virtus Investment Partners | Dis Fastigheter vs. MGIC INVESTMENT | Dis Fastigheter vs. PennantPark Investment | Dis Fastigheter vs. DIVERSIFIED ROYALTY |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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