Correlation Between Xtrackers MSCI and DWS
Can any of the company-specific risk be diversified away by investing in both Xtrackers MSCI 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 Xtrackers MSCI and DWS 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 DWS, you can compare the effects of market volatilities on Xtrackers MSCI 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 Xtrackers MSCI with a short position of DWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers MSCI and DWS.
Diversification Opportunities for Xtrackers MSCI and DWS
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and DWS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI EAFE and DWS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS 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 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 Xtrackers MSCI i.e., Xtrackers MSCI and DWS go up and down completely randomly.
Pair Corralation between Xtrackers MSCI and DWS
If you would invest 2,536 in DWS on August 28, 2024 and sell it today you would earn a total of 0.00 from holding DWS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Xtrackers MSCI EAFE vs. DWS
Performance |
| Timeline |
| Xtrackers MSCI EAFE |
| DWS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xtrackers MSCI and DWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers MSCI and DWS
The main advantage of trading using opposite Xtrackers MSCI and DWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers MSCI 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.| Xtrackers MSCI vs. Fidelity International High | Xtrackers MSCI vs. Global X MSCI | Xtrackers MSCI vs. Xtrackers USD High | Xtrackers MSCI vs. First Trust Dow |
| DWS vs. Dimensional Targeted Value | DWS vs. Dimensional Small Cap | DWS vs. Dimensional Marketwide Value | DWS vs. Dimensional Core Equity |
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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