Correlation Between Xtrackers LevDAX and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and Acadia Realty 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 Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and Acadia Realty Trust, you can compare the effects of market volatilities on Xtrackers LevDAX and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Acadia Realty.
Diversification Opportunities for Xtrackers LevDAX and Acadia Realty
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Acadia is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and Acadia Realty go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and Acadia Realty
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 1.18 times more return on investment than Acadia Realty. However, Xtrackers LevDAX is 1.18 times more volatile than Acadia Realty Trust. It trades about 0.2 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about -0.04 per unit of risk. If you would invest 19,150 in Xtrackers LevDAX on November 7, 2024 and sell it today you would earn a total of 4,340 from holding Xtrackers LevDAX or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Xtrackers LevDAX vs. Acadia Realty Trust
Performance |
| Timeline |
| Xtrackers LevDAX |
| Acadia Realty Trust |
Xtrackers LevDAX and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and Acadia Realty
The main advantage of trading using opposite Xtrackers LevDAX and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty'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 |
| Acadia Realty vs. BROADWIND ENRGY | Acadia Realty vs. SPARTAN STORES | Acadia Realty vs. Fukuyama Transporting Co | Acadia Realty vs. COPLAND ROAD CAPITAL |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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