Correlation Between Xtrackers LevDAX and USS
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and USS 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 USS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and USS Co, you can compare the effects of market volatilities on Xtrackers LevDAX and USS 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 USS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and USS.
Diversification Opportunities for Xtrackers LevDAX and USS
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and USS is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and USS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USS Co 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 USS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USS Co has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and USS go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and USS
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 5.15 times less return on investment than USS. In addition to that, Xtrackers LevDAX is 1.03 times more volatile than USS Co. It trades about 0.02 of its total potential returns per unit of risk. USS Co is currently generating about 0.09 per unit of volatility. If you would invest 730.00 in USS Co on September 3, 2024 and sell it today you would earn a total of 135.00 from holding USS Co or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Xtrackers LevDAX vs. USS Co
Performance |
| Timeline |
| Xtrackers LevDAX |
| USS Co |
Xtrackers LevDAX and USS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and USS
The main advantage of trading using opposite Xtrackers LevDAX and USS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, USS 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 USS will offset losses from the drop in USS'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |