Correlation Between Global X and DWS
Can any of the company-specific risk be diversified away by investing in both Global X and DWS 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 Global X and DWS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X MSCI and DWS, you can compare the effects of market volatilities on Global X and DWS 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 Global X with a short position of DWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and DWS.
Diversification Opportunities for Global X and DWS
Very good diversification
The 3 months correlation between Global and DWS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Global X MSCI and DWS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS and Global X 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 Global X MSCI are associated (or correlated) with DWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS has no effect on the direction of Global X i.e., Global X and DWS go up and down completely randomly.
Pair Corralation between Global X and DWS
Given the investment horizon of 90 days Global X is expected to generate 1.37 times less return on investment than DWS. In addition to that, Global X is 1.17 times more volatile than DWS. It trades about 0.05 of its total potential returns per unit of risk. DWS is currently generating about 0.08 per unit of volatility. If you would invest 2,044 in DWS on August 30, 2024 and sell it today you would earn a total of 492.00 from holding DWS or generate 24.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.85% |
| Values | Daily Returns |
Global X MSCI vs. DWS
Performance |
| Timeline |
| Global X MSCI |
| DWS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and DWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and DWS
The main advantage of trading using opposite Global X and DWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, DWS 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 DWS will offset losses from the drop in DWS's long position.| Global X vs. Global X MSCI | Global X vs. Global X Alternative | Global X vs. First Trust Intl | Global X vs. iShares AsiaPacific Dividend |
| DWS vs. Xtrackers MSCI EAFE | DWS vs. iShares AsiaPacific Dividend | DWS vs. WBI Power Factor | DWS vs. Global X 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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