Correlation Between Xtrackers Nikkei and IShares Global
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and iShares Global AAA AA, you can compare the effects of market volatilities on Xtrackers Nikkei and IShares Global 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and IShares Global.
Diversification Opportunities for Xtrackers Nikkei and IShares Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and iShares Global AAA AA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global AAA 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global AAA has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and IShares Global go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and IShares Global
If you would invest 7,171 in iShares Global AAA AA on August 30, 2024 and sell it today you would earn a total of 123.00 from holding iShares Global AAA AA or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. iShares Global AAA AA
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Global AAA |
Xtrackers Nikkei and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and IShares Global
The main advantage of trading using opposite Xtrackers Nikkei and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global's long position.The idea behind Xtrackers Nikkei 225 and iShares Global AAA AA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IShares Global vs. iShares Govt Bond | IShares Global vs. iShares Smart City | IShares Global vs. iShares Broad High | IShares Global vs. iShares Emerging Markets |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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