Correlation Between Xtrackers Nikkei and SPDR Barclays
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and SPDR Barclays 3 5, you can compare the effects of market volatilities on Xtrackers Nikkei and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and SPDR Barclays.
Diversification Opportunities for Xtrackers Nikkei and SPDR Barclays
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xtrackers and SPDR is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and SPDR Barclays 3 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays 3 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 SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays 3 has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and SPDR Barclays go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and SPDR Barclays
Assuming the 90 days trading horizon Xtrackers Nikkei 225 is expected to generate 2.25 times more return on investment than SPDR Barclays. However, Xtrackers Nikkei is 2.25 times more volatile than SPDR Barclays 3 5. It trades about 0.04 of its potential returns per unit of risk. SPDR Barclays 3 5 is currently generating about 0.02 per unit of risk. If you would invest 2,008 in Xtrackers Nikkei 225 on September 3, 2024 and sell it today you would earn a total of 462.00 from holding Xtrackers Nikkei 225 or generate 23.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. SPDR Barclays 3 5
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| SPDR Barclays 3 |
Xtrackers Nikkei and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and SPDR Barclays
The main advantage of trading using opposite Xtrackers Nikkei and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Xtrackers Nikkei vs. UBS Fund Solutions | Xtrackers Nikkei vs. Xtrackers II | Xtrackers Nikkei vs. iShares VII PLC | Xtrackers Nikkei vs. SPDR Gold Shares |
| SPDR Barclays vs. UBS Fund Solutions | SPDR Barclays vs. Xtrackers II | SPDR Barclays vs. Xtrackers Nikkei 225 | SPDR Barclays 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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