Correlation Between IShares Currency and DXGE
Can any of the company-specific risk be diversified away by investing in both IShares Currency and DXGE 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 IShares Currency and DXGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Currency Hedged and DXGE, you can compare the effects of market volatilities on IShares Currency and DXGE 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 IShares Currency with a short position of DXGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Currency and DXGE.
Diversification Opportunities for IShares Currency and DXGE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and DXGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Currency Hedged and DXGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXGE and IShares Currency 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 iShares Currency Hedged are associated (or correlated) with DXGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXGE has no effect on the direction of IShares Currency i.e., IShares Currency and DXGE go up and down completely randomly.
Pair Corralation between IShares Currency and DXGE
If you would invest 3,642 in DXGE on August 25, 2024 and sell it today you would earn a total of 0.00 from holding DXGE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
iShares Currency Hedged vs. DXGE
Performance |
| Timeline |
| iShares Currency Hedged |
| DXGE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares Currency and DXGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Currency and DXGE
The main advantage of trading using opposite IShares Currency and DXGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Currency position performs unexpectedly, DXGE 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 DXGE will offset losses from the drop in DXGE's long position.| IShares Currency vs. iShares Currency Hedged | IShares Currency vs. iShares Currency Hedged | IShares Currency vs. Xtrackers MSCI Europe | IShares Currency vs. iShares Currency Hedged |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |