Correlation Between Xtrackers and Xtrackers LevDAX
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xtrackers II Global and Xtrackers LevDAX, you can compare the effects of market volatilities on Xtrackers and Xtrackers LevDAX 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 with a short position of Xtrackers LevDAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Xtrackers LevDAX.
Diversification Opportunities for Xtrackers and Xtrackers LevDAX
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Xtrackers is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II Global and Xtrackers LevDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers LevDAX and Xtrackers 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 II Global are associated (or correlated) with Xtrackers LevDAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers LevDAX has no effect on the direction of Xtrackers i.e., Xtrackers and Xtrackers LevDAX go up and down completely randomly.
Pair Corralation between Xtrackers and Xtrackers LevDAX
Assuming the 90 days trading horizon Xtrackers is expected to generate 33.56 times less return on investment than Xtrackers LevDAX. But when comparing it to its historical volatility, Xtrackers II Global is 4.54 times less risky than Xtrackers LevDAX. It trades about 0.02 of its potential returns per unit of risk. Xtrackers LevDAX is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 15,438 in Xtrackers LevDAX on November 3, 2024 and sell it today you would earn a total of 8,052 from holding Xtrackers LevDAX or generate 52.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Xtrackers II Global vs. Xtrackers LevDAX
Performance |
| Timeline |
| Xtrackers II Global |
| Xtrackers LevDAX |
Xtrackers and Xtrackers LevDAX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and Xtrackers LevDAX
The main advantage of trading using opposite Xtrackers and Xtrackers LevDAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, Xtrackers LevDAX 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 Xtrackers LevDAX will offset losses from the drop in Xtrackers LevDAX's long position.| Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI | Xtrackers vs. Xtrackers Stoxx |
| Xtrackers LevDAX vs. Xtrackers II Global | Xtrackers LevDAX vs. Xtrackers FTSE | Xtrackers LevDAX vs. Xtrackers SP 500 | Xtrackers LevDAX vs. Xtrackers MSCI |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |