Correlation Between Xtrackers FTSE and Xtrackers Harvest
Can any of the company-specific risk be diversified away by investing in both Xtrackers FTSE and Xtrackers Harvest 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 FTSE and Xtrackers Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers FTSE 250 and Xtrackers Harvest CSI300, you can compare the effects of market volatilities on Xtrackers FTSE and Xtrackers Harvest 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 FTSE with a short position of Xtrackers Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers FTSE and Xtrackers Harvest.
Diversification Opportunities for Xtrackers FTSE and Xtrackers Harvest
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xtrackers and Xtrackers is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers FTSE 250 and Xtrackers Harvest CSI300 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Harvest CSI300 and Xtrackers FTSE 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 FTSE 250 are associated (or correlated) with Xtrackers Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Harvest CSI300 has no effect on the direction of Xtrackers FTSE i.e., Xtrackers FTSE and Xtrackers Harvest go up and down completely randomly.
Pair Corralation between Xtrackers FTSE and Xtrackers Harvest
Assuming the 90 days trading horizon Xtrackers FTSE 250 is expected to generate 0.36 times more return on investment than Xtrackers Harvest. However, Xtrackers FTSE 250 is 2.79 times less risky than Xtrackers Harvest. It trades about 0.01 of its potential returns per unit of risk. Xtrackers Harvest CSI300 is currently generating about -0.05 per unit of risk. If you would invest 193,321 in Xtrackers FTSE 250 on August 30, 2024 and sell it today you would earn a total of 379.00 from holding Xtrackers FTSE 250 or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers FTSE 250 vs. Xtrackers Harvest CSI300
Performance |
| Timeline |
| Xtrackers FTSE 250 |
| Xtrackers Harvest CSI300 |
Xtrackers FTSE and Xtrackers Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers FTSE and Xtrackers Harvest
The main advantage of trading using opposite Xtrackers FTSE and Xtrackers Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers FTSE position performs unexpectedly, Xtrackers Harvest 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 Harvest will offset losses from the drop in Xtrackers Harvest's long position.| Xtrackers FTSE vs. Vanguard FTSE Developed | Xtrackers FTSE vs. Leverage Shares 2x | Xtrackers FTSE vs. Amundi Index Solutions | Xtrackers FTSE vs. Amundi Index Solutions |
| Xtrackers Harvest vs. Xtrackers MSCI | Xtrackers Harvest vs. Xtrackers FTSE 250 | Xtrackers Harvest vs. Xtrackers Ie Plc | Xtrackers Harvest vs. Xtrackers Russell 2000 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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