Correlation Between DWS Aktien and BGF Euro
Can any of the company-specific risk be diversified away by investing in both DWS Aktien and BGF Euro 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 DWS Aktien and BGF Euro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DWS Aktien Strategie and BGF Euro Markets, you can compare the effects of market volatilities on DWS Aktien and BGF Euro 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 DWS Aktien with a short position of BGF Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of DWS Aktien and BGF Euro.
Diversification Opportunities for DWS Aktien and BGF Euro
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between DWS and BGF is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding DWS Aktien Strategie and BGF Euro Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Euro Markets and DWS Aktien 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 DWS Aktien Strategie are associated (or correlated) with BGF Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Euro Markets has no effect on the direction of DWS Aktien i.e., DWS Aktien and BGF Euro go up and down completely randomly.
Pair Corralation between DWS Aktien and BGF Euro
Assuming the 90 days trading horizon DWS Aktien Strategie is expected to generate 1.05 times more return on investment than BGF Euro. However, DWS Aktien is 1.05 times more volatile than BGF Euro Markets. It trades about 0.2 of its potential returns per unit of risk. BGF Euro Markets is currently generating about 0.18 per unit of risk. If you would invest 53,892 in DWS Aktien Strategie on December 4, 2024 and sell it today you would earn a total of 2,147 from holding DWS Aktien Strategie or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DWS Aktien Strategie vs. BGF Euro Markets
Performance |
| Timeline |
| DWS Aktien Strategie |
| BGF Euro Markets |
DWS Aktien and BGF Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DWS Aktien and BGF Euro
The main advantage of trading using opposite DWS Aktien and BGF Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DWS Aktien position performs unexpectedly, BGF Euro 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 BGF Euro will offset losses from the drop in BGF Euro's long position.| DWS Aktien vs. Esfera Robotics R | DWS Aktien vs. R co Valor F | DWS Aktien vs. CM AM Monplus NE | DWS Aktien vs. IE00B0H4TS55 |
| BGF Euro vs. Esfera Robotics R | BGF Euro vs. R co Valor F | BGF Euro vs. CM AM Monplus NE | BGF Euro vs. IE00B0H4TS55 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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