Correlation Between Xtrackers LevDAX and LYXOR EURO
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By analyzing existing cross correlation between Xtrackers LevDAX and LYXOR EURO STOXX, you can compare the effects of market volatilities on Xtrackers LevDAX and LYXOR EURO 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 LYXOR EURO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and LYXOR EURO.
Diversification Opportunities for Xtrackers LevDAX and LYXOR EURO
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and LYXOR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and LYXOR EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYXOR EURO STOXX 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 LYXOR EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYXOR EURO STOXX has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and LYXOR EURO go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and LYXOR EURO
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 1.17 times more return on investment than LYXOR EURO. However, Xtrackers LevDAX is 1.17 times more volatile than LYXOR EURO STOXX. It trades about 0.2 of its potential returns per unit of risk. LYXOR EURO STOXX is currently generating about -0.08 per unit of risk. If you would invest 19,106 in Xtrackers LevDAX on September 12, 2024 and sell it today you would earn a total of 1,824 from holding Xtrackers LevDAX or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers LevDAX vs. LYXOR EURO STOXX
Performance |
| Timeline |
| Xtrackers LevDAX |
| LYXOR EURO STOXX |
Xtrackers LevDAX and LYXOR EURO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and LYXOR EURO
The main advantage of trading using opposite Xtrackers LevDAX and LYXOR EURO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, LYXOR EURO 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 LYXOR EURO will offset losses from the drop in LYXOR EURO's long position.| Xtrackers LevDAX vs. UBS Fund Solutions | Xtrackers LevDAX vs. Xtrackers II | Xtrackers LevDAX vs. Xtrackers Nikkei 225 | Xtrackers LevDAX vs. iShares VII PLC |
| LYXOR EURO vs. LYXOR EURO STOXX | LYXOR EURO vs. LYXOR DAILY SHORTDAX | LYXOR EURO vs. LYXOR Index Fund | LYXOR EURO vs. LYXOR DAILY SHORTDAX |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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