Correlation Between Xtrackers LevDAX and Siltronic
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and Siltronic 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 Siltronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and Siltronic AG, you can compare the effects of market volatilities on Xtrackers LevDAX and Siltronic 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 Siltronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Siltronic.
Diversification Opportunities for Xtrackers LevDAX and Siltronic
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Siltronic is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and Siltronic AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siltronic 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 Siltronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siltronic AG has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and Siltronic go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and Siltronic
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 0.56 times more return on investment than Siltronic. However, Xtrackers LevDAX is 1.79 times less risky than Siltronic. It trades about 0.62 of its potential returns per unit of risk. Siltronic AG is currently generating about -0.2 per unit of risk. If you would invest 20,055 in Xtrackers LevDAX on October 26, 2024 and sell it today you would earn a total of 3,055 from holding Xtrackers LevDAX or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Xtrackers LevDAX vs. Siltronic AG
Performance |
| Timeline |
| Xtrackers LevDAX |
| Siltronic AG |
Xtrackers LevDAX and Siltronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and Siltronic
The main advantage of trading using opposite Xtrackers LevDAX and Siltronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, Siltronic 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 Siltronic will offset losses from the drop in Siltronic'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 |
| Siltronic vs. CVS Health | Siltronic vs. WESANA HEALTH HOLD | Siltronic vs. Universal Insurance Holdings | Siltronic vs. EPSILON HEALTHCARE LTD |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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