Correlation Between DBX ETF and Exchange Listed
Can any of the company-specific risk be diversified away by investing in both DBX ETF and Exchange Listed 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 DBX ETF and Exchange Listed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DBX ETF Trust and Exchange Listed Funds, you can compare the effects of market volatilities on DBX ETF and Exchange Listed 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 DBX ETF with a short position of Exchange Listed. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBX ETF and Exchange Listed.
Diversification Opportunities for DBX ETF and Exchange Listed
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DBX and Exchange is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding DBX ETF Trust and Exchange Listed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Listed Funds and DBX ETF 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 DBX ETF Trust are associated (or correlated) with Exchange Listed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Listed Funds has no effect on the direction of DBX ETF i.e., DBX ETF and Exchange Listed go up and down completely randomly.
Pair Corralation between DBX ETF and Exchange Listed
Given the investment horizon of 90 days DBX ETF Trust is expected to generate 0.79 times more return on investment than Exchange Listed. However, DBX ETF Trust is 1.27 times less risky than Exchange Listed. It trades about 0.27 of its potential returns per unit of risk. Exchange Listed Funds is currently generating about 0.13 per unit of risk. If you would invest 5,285 in DBX ETF Trust on September 16, 2024 and sell it today you would earn a total of 118.00 from holding DBX ETF Trust or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
DBX ETF Trust vs. Exchange Listed Funds
Performance |
| Timeline |
| DBX ETF Trust |
| Exchange Listed Funds |
DBX ETF and Exchange Listed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DBX ETF and Exchange Listed
The main advantage of trading using opposite DBX ETF and Exchange Listed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DBX ETF position performs unexpectedly, Exchange Listed 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 Exchange Listed will offset losses from the drop in Exchange Listed's long position.| DBX ETF vs. Vanguard SP 500 | DBX ETF vs. Vanguard Real Estate | DBX ETF vs. Vanguard Total Bond | DBX ETF vs. Vanguard High Dividend |
| Exchange Listed vs. ProShares SP 500 | Exchange Listed vs. American Century Quality | Exchange Listed vs. DBX ETF Trust | Exchange Listed vs. Xtrackers Short Duration |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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