Correlation Between Xtrackers MSCI and DBX ETF
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI and DBX ETF 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 MSCI and DBX ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers MSCI EAFE and DBX ETF Trust, you can compare the effects of market volatilities on Xtrackers MSCI and DBX ETF 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 MSCI with a short position of DBX ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and DBX ETF.
Diversification Opportunities for Xtrackers MSCI and DBX ETF
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and DBX is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI EAFE and DBX ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBX ETF Trust and Xtrackers MSCI 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 MSCI EAFE are associated (or correlated) with DBX ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBX ETF Trust has no effect on the direction of Xtrackers MSCI i.e., Xtrackers MSCI and DBX ETF go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and DBX ETF
If you would invest 3,080 in Xtrackers MSCI EAFE on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Xtrackers MSCI EAFE or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 9.52% |
| Values | Daily Returns |
Xtrackers MSCI EAFE vs. DBX ETF Trust
Performance |
| Timeline |
| Xtrackers MSCI EAFE |
| DBX ETF Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Xtrackers MSCI and DBX ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and DBX ETF
The main advantage of trading using opposite Xtrackers MSCI and DBX ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI position performs unexpectedly, DBX ETF 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 DBX ETF will offset losses from the drop in DBX ETF's long position.| Xtrackers MSCI vs. NuShares ETF Trust | Xtrackers MSCI vs. iShares ESG Aggregate | Xtrackers MSCI vs. SPDR MSCI Emerging |
| DBX ETF vs. Xtrackers MSCI EAFE | DBX ETF vs. SPDR MSCI Emerging | DBX ETF vs. NuShares ETF Trust | DBX ETF vs. Xtrackers MSCI USA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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