Correlation Between Xtrackers LevDAX and Strix Group
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and Strix Group 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 Strix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and Strix Group Plc, you can compare the effects of market volatilities on Xtrackers LevDAX and Strix 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 Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Strix Group.
Diversification Opportunities for Xtrackers LevDAX and Strix Group
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Strix is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and Strix Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strix Group Plc 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 Strix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strix Group Plc has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and Strix Group go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and Strix Group
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 0.47 times more return on investment than Strix Group. However, Xtrackers LevDAX is 2.12 times less risky than Strix Group. It trades about 0.05 of its potential returns per unit of risk. Strix Group Plc is currently generating about -0.02 per unit of risk. If you would invest 13,422 in Xtrackers LevDAX on August 27, 2024 and sell it today you would earn a total of 5,000 from holding Xtrackers LevDAX or generate 37.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Xtrackers LevDAX vs. Strix Group Plc
Performance |
| Timeline |
| Xtrackers LevDAX |
| Strix Group Plc |
Xtrackers LevDAX and Strix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and Strix Group
The main advantage of trading using opposite Xtrackers LevDAX and Strix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, Strix 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 Strix Group will offset losses from the drop in Strix 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 |
| Strix Group vs. Japan Tobacco | Strix Group vs. Transport International Holdings | Strix Group vs. Taiwan Semiconductor Manufacturing | Strix Group vs. UPDATE SOFTWARE |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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