Correlation Between Xtrackers Nikkei and LG DAX
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xtrackers Nikkei 225 and LG DAX Daily, you can compare the effects of market volatilities on Xtrackers Nikkei and LG DAX 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 Nikkei with a short position of LG DAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and LG DAX.
Diversification Opportunities for Xtrackers Nikkei and LG DAX
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and DES2 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and LG DAX Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG DAX Daily and Xtrackers Nikkei 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 Nikkei 225 are associated (or correlated) with LG DAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG DAX Daily has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and LG DAX go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and LG DAX
Assuming the 90 days trading horizon Xtrackers Nikkei 225 is expected to generate 0.73 times more return on investment than LG DAX. However, Xtrackers Nikkei 225 is 1.36 times less risky than LG DAX. It trades about 0.03 of its potential returns per unit of risk. LG DAX Daily is currently generating about -0.06 per unit of risk. If you would invest 2,344 in Xtrackers Nikkei 225 on August 28, 2024 and sell it today you would earn a total of 122.00 from holding Xtrackers Nikkei 225 or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. LG DAX Daily
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| LG DAX Daily |
Xtrackers Nikkei and LG DAX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and LG DAX
The main advantage of trading using opposite Xtrackers Nikkei and LG DAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, LG DAX 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 LG DAX will offset losses from the drop in LG DAX's long position.| Xtrackers Nikkei vs. Xtrackers II Global | Xtrackers Nikkei vs. Xtrackers FTSE | Xtrackers Nikkei vs. Xtrackers SP 500 | Xtrackers Nikkei vs. Xtrackers MSCI |
| LG DAX vs. UBS Fund Solutions | LG DAX vs. Xtrackers II | LG DAX vs. Xtrackers Nikkei 225 | LG DAX vs. iShares VII PLC |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |