Correlation Between Xtrackers and IShares Public
Can any of the company-specific risk be diversified away by investing in both Xtrackers and IShares Public at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xtrackers and IShares Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers II and iShares Public Limited, you can compare the effects of market volatilities on Xtrackers and IShares Public 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 IShares Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and IShares Public.
Diversification Opportunities for Xtrackers and IShares Public
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xtrackers and IShares is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and iShares Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Public 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 are associated (or correlated) with IShares Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Public has no effect on the direction of Xtrackers i.e., Xtrackers and IShares Public go up and down completely randomly.
Pair Corralation between Xtrackers and IShares Public
Assuming the 90 days trading horizon Xtrackers II is expected to generate 1.07 times more return on investment than IShares Public. However, Xtrackers is 1.07 times more volatile than iShares Public Limited. It trades about 0.19 of its potential returns per unit of risk. iShares Public Limited is currently generating about 0.16 per unit of risk. If you would invest 752.00 in Xtrackers II on September 5, 2024 and sell it today you would earn a total of 34.00 from holding Xtrackers II or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers II vs. iShares Public Limited
Performance |
| Timeline |
| Xtrackers II |
| iShares Public |
Xtrackers and IShares Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and IShares Public
The main advantage of trading using opposite Xtrackers and IShares Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, IShares Public 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 Public will offset losses from the drop in IShares Public's long position.| Xtrackers vs. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI |
| IShares Public vs. UBS Fund Solutions | IShares Public vs. Xtrackers II | IShares Public vs. Xtrackers Nikkei 225 | IShares Public vs. SPDR Gold Shares |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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