Correlation Between Xtrackers Nikkei and UBS ETF
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xtrackers Nikkei 225 and UBS ETF SICAV, you can compare the effects of market volatilities on Xtrackers Nikkei and UBS ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and UBS ETF.
Diversification Opportunities for Xtrackers Nikkei and UBS ETF
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xtrackers and UBS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and UBS ETF SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF SICAV 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF SICAV has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and UBS ETF go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and UBS ETF
Assuming the 90 days trading horizon Xtrackers Nikkei 225 is expected to generate 1.33 times more return on investment than UBS ETF. However, Xtrackers Nikkei is 1.33 times more volatile than UBS ETF SICAV. It trades about 0.01 of its potential returns per unit of risk. UBS ETF SICAV is currently generating about -0.05 per unit of risk. If you would invest 2,436 in Xtrackers Nikkei 225 on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Xtrackers Nikkei 225 or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. UBS ETF SICAV
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| UBS ETF SICAV |
Xtrackers Nikkei and UBS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and UBS ETF
The main advantage of trading using opposite Xtrackers Nikkei and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, UBS ETF 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 ETF will offset losses from the drop in UBS ETF'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 |
| UBS ETF vs. Xtrackers Nikkei 225 | UBS ETF vs. iShares VII PLC | UBS ETF vs. NMI Holdings | UBS ETF vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |