Correlation Between Xtrackers Nikkei and UBS Barclays
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and UBS Barclays Liquid, you can compare the effects of market volatilities on Xtrackers Nikkei and UBS 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 UBS Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and UBS Barclays.
Diversification Opportunities for Xtrackers Nikkei and UBS Barclays
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xtrackers and UBS is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and UBS Barclays Liquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Barclays Liquid 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 UBS Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Barclays Liquid has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and UBS Barclays go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and UBS Barclays
Assuming the 90 days trading horizon Xtrackers Nikkei is expected to generate 1.37 times less return on investment than UBS Barclays. In addition to that, Xtrackers Nikkei is 2.17 times more volatile than UBS Barclays Liquid. It trades about 0.15 of its total potential returns per unit of risk. UBS Barclays Liquid is currently generating about 0.46 per unit of volatility. If you would invest 1,365 in UBS Barclays Liquid on September 3, 2024 and sell it today you would earn a total of 62.00 from holding UBS Barclays Liquid or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. UBS Barclays Liquid
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| UBS Barclays Liquid |
Xtrackers Nikkei and UBS Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and UBS Barclays
The main advantage of trading using opposite Xtrackers Nikkei and UBS Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, UBS 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 UBS Barclays will offset losses from the drop in UBS 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 |
| UBS Barclays vs. UBS Fund Solutions | UBS Barclays vs. Xtrackers II | UBS Barclays vs. Xtrackers Nikkei 225 | UBS 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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