Correlation Between Xtrackers and Xtrackers Stoxx
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By analyzing existing cross correlation between Xtrackers II Global and Xtrackers Stoxx, you can compare the effects of market volatilities on Xtrackers and Xtrackers Stoxx 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 Stoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Xtrackers Stoxx.
Diversification Opportunities for Xtrackers and Xtrackers Stoxx
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and Xtrackers is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II Global and Xtrackers Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Stoxx 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 Stoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Stoxx has no effect on the direction of Xtrackers i.e., Xtrackers and Xtrackers Stoxx go up and down completely randomly.
Pair Corralation between Xtrackers and Xtrackers Stoxx
Assuming the 90 days trading horizon Xtrackers II Global is expected to generate 0.51 times more return on investment than Xtrackers Stoxx. However, Xtrackers II Global is 1.95 times less risky than Xtrackers Stoxx. It trades about 0.01 of its potential returns per unit of risk. Xtrackers Stoxx is currently generating about -0.04 per unit of risk. If you would invest 21,350 in Xtrackers II Global on September 1, 2024 and sell it today you would earn a total of 380.00 from holding Xtrackers II Global or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Xtrackers II Global vs. Xtrackers Stoxx
Performance |
| Timeline |
| Xtrackers II Global |
| Xtrackers Stoxx |
Xtrackers and Xtrackers Stoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and Xtrackers Stoxx
The main advantage of trading using opposite Xtrackers and Xtrackers Stoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, Xtrackers Stoxx 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 Stoxx will offset losses from the drop in Xtrackers Stoxx's long position.| Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI | Xtrackers vs. Xtrackers Stoxx |
| Xtrackers Stoxx vs. Xtrackers II Global | Xtrackers Stoxx vs. Xtrackers FTSE | Xtrackers Stoxx vs. Xtrackers SP 500 | Xtrackers Stoxx 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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