Correlation Between Xtrackers LevDAX and CubeSmart
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and CubeSmart 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 CubeSmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and CubeSmart, you can compare the effects of market volatilities on Xtrackers LevDAX and CubeSmart 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 CubeSmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and CubeSmart.
Diversification Opportunities for Xtrackers LevDAX and CubeSmart
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtrackers and CubeSmart is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and CubeSmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CubeSmart 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 CubeSmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CubeSmart has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and CubeSmart go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and CubeSmart
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to under-perform the CubeSmart. In addition to that, Xtrackers LevDAX is 1.15 times more volatile than CubeSmart. It trades about -0.01 of its total potential returns per unit of risk. CubeSmart is currently generating about 0.21 per unit of volatility. If you would invest 4,362 in CubeSmart on September 1, 2024 and sell it today you would earn a total of 293.00 from holding CubeSmart or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Xtrackers LevDAX vs. CubeSmart
Performance |
| Timeline |
| Xtrackers LevDAX |
| CubeSmart |
Xtrackers LevDAX and CubeSmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and CubeSmart
The main advantage of trading using opposite Xtrackers LevDAX and CubeSmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, CubeSmart 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 CubeSmart will offset losses from the drop in CubeSmart'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 |
| CubeSmart vs. Coor Service Management | CubeSmart vs. Consolidated Communications Holdings | CubeSmart vs. Cogent Communications Holdings | CubeSmart vs. SK TELECOM TDADR |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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