Correlation Between Xtrackers LevDAX and Norma Group
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By analyzing existing cross correlation between Xtrackers LevDAX and Norma Group AG, you can compare the effects of market volatilities on Xtrackers LevDAX and Norma Group 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 Norma Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Norma Group.
Diversification Opportunities for Xtrackers LevDAX and Norma Group
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Norma is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and Norma Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norma Group AG 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 Norma Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norma Group AG has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and Norma Group go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and Norma Group
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 0.62 times more return on investment than Norma Group. However, Xtrackers LevDAX is 1.62 times less risky than Norma Group. It trades about 0.03 of its potential returns per unit of risk. Norma Group AG is currently generating about -0.04 per unit of risk. If you would invest 18,078 in Xtrackers LevDAX on September 3, 2024 and sell it today you would earn a total of 344.00 from holding Xtrackers LevDAX or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Xtrackers LevDAX vs. Norma Group AG
Performance |
| Timeline |
| Xtrackers LevDAX |
| Norma Group AG |
Xtrackers LevDAX and Norma Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and Norma Group
The main advantage of trading using opposite Xtrackers LevDAX and Norma Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, Norma Group 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 Norma Group will offset losses from the drop in Norma Group'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 |
| Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. Mitie Group PLC | Norma Group vs. LODESTAR MIN |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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