Correlation Between Xtrackers and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both Xtrackers and SPDR Barclays 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 SPDR Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers II and SPDR Barclays 10, you can compare the effects of market volatilities on Xtrackers and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and SPDR Barclays.
Diversification Opportunities for Xtrackers and SPDR Barclays
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xtrackers and SPDR is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and SPDR Barclays 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays 10 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 SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays 10 has no effect on the direction of Xtrackers i.e., Xtrackers and SPDR Barclays go up and down completely randomly.
Pair Corralation between Xtrackers and SPDR Barclays
Assuming the 90 days trading horizon Xtrackers is expected to generate 1.28 times less return on investment than SPDR Barclays. In addition to that, Xtrackers is 1.21 times more volatile than SPDR Barclays 10. It trades about 0.19 of its total potential returns per unit of risk. SPDR Barclays 10 is currently generating about 0.29 per unit of volatility. If you would invest 2,486 in SPDR Barclays 10 on September 5, 2024 and sell it today you would earn a total of 146.00 from holding SPDR Barclays 10 or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers II vs. SPDR Barclays 10
Performance |
| Timeline |
| Xtrackers II |
| SPDR Barclays 10 |
Xtrackers and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and SPDR Barclays
The main advantage of trading using opposite Xtrackers and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| Xtrackers vs. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI |
| SPDR Barclays vs. SPDR ICE BofA | SPDR Barclays vs. SPDR SP Utilities | SPDR Barclays vs. SPDR ICE BofA | SPDR Barclays vs. SPDR Barclays 3 5 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |