Correlation Between Xtrackers Nikkei and Global X
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and Global X FinTech, you can compare the effects of market volatilities on Xtrackers Nikkei and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and Global X.
Diversification Opportunities for Xtrackers Nikkei and Global X
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xtrackers and Global is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and Global X FinTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X FinTech 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X FinTech has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and Global X go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and Global X
Assuming the 90 days trading horizon Xtrackers Nikkei 225 is expected to generate 0.87 times more return on investment than Global X. However, Xtrackers Nikkei 225 is 1.15 times less risky than Global X. It trades about 0.3 of its potential returns per unit of risk. Global X FinTech is currently generating about 0.12 per unit of risk. If you would invest 2,444 in Xtrackers Nikkei 225 on September 14, 2024 and sell it today you would earn a total of 143.00 from holding Xtrackers Nikkei 225 or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. Global X FinTech
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| Global X FinTech |
Xtrackers Nikkei and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and Global X
The main advantage of trading using opposite Xtrackers Nikkei and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's 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 |
| Global X vs. UBS Fund Solutions | Global X vs. Xtrackers II | Global X vs. Xtrackers Nikkei 225 | Global X 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 Valuation module to check real value of public entities based on technical and fundamental data.
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