Correlation Between Xtrackers Nikkei and IShares EUR
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By analyzing existing cross correlation between Xtrackers Nikkei 225 and iShares EUR Cash, you can compare the effects of market volatilities on Xtrackers Nikkei and IShares EUR 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 EUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Nikkei and IShares EUR.
Diversification Opportunities for Xtrackers Nikkei and IShares EUR
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and IShares is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Nikkei 225 and iShares EUR Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares EUR Cash 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 EUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares EUR Cash has no effect on the direction of Xtrackers Nikkei i.e., Xtrackers Nikkei and IShares EUR go up and down completely randomly.
Pair Corralation between Xtrackers Nikkei and IShares EUR
Assuming the 90 days trading horizon Xtrackers Nikkei 225 is expected to generate 27.72 times more return on investment than IShares EUR. However, Xtrackers Nikkei is 27.72 times more volatile than iShares EUR Cash. It trades about 0.05 of its potential returns per unit of risk. iShares EUR Cash is currently generating about 0.33 per unit of risk. If you would invest 2,187 in Xtrackers Nikkei 225 on October 16, 2024 and sell it today you would earn a total of 289.00 from holding Xtrackers Nikkei 225 or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 11.19% |
| Values | Daily Returns |
Xtrackers Nikkei 225 vs. iShares EUR Cash
Performance |
| Timeline |
| Xtrackers Nikkei 225 |
| iShares EUR Cash |
Xtrackers Nikkei and IShares EUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers Nikkei and IShares EUR
The main advantage of trading using opposite Xtrackers Nikkei and IShares EUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Nikkei position performs unexpectedly, IShares EUR 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 EUR will offset losses from the drop in IShares EUR'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 |
| IShares EUR vs. iShares Govt Bond | IShares EUR vs. iShares Global AAA AA | IShares EUR vs. iShares Smart City | IShares EUR vs. iShares Broad High |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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