Correlation Between Xtrackers FTSE and Xtrackers
Can any of the company-specific risk be diversified away by investing in both Xtrackers FTSE and Xtrackers 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 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 SP 500, you can compare the effects of market volatilities on Xtrackers FTSE and Xtrackers 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers FTSE and Xtrackers.
Diversification Opportunities for Xtrackers FTSE and Xtrackers
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Xtrackers is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers FTSE 250 and Xtrackers SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers SP 500 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers SP 500 has no effect on the direction of Xtrackers FTSE i.e., Xtrackers FTSE and Xtrackers go up and down completely randomly.
Pair Corralation between Xtrackers FTSE and Xtrackers
Assuming the 90 days trading horizon Xtrackers FTSE 250 is expected to under-perform the Xtrackers. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers FTSE 250 is 2.32 times less risky than Xtrackers. The etf trades about -0.05 of its potential returns per unit of risk. The Xtrackers SP 500 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 22,909 in Xtrackers SP 500 on August 24, 2024 and sell it today you would earn a total of 953.00 from holding Xtrackers SP 500 or generate 4.16% 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 SP 500
Performance |
| Timeline |
| Xtrackers FTSE 250 |
| Xtrackers SP 500 |
Xtrackers FTSE and Xtrackers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers FTSE and Xtrackers
The main advantage of trading using opposite Xtrackers FTSE and Xtrackers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers FTSE position performs unexpectedly, Xtrackers 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 will offset losses from the drop in Xtrackers' long position.| Xtrackers FTSE vs. WisdomTree NASDAQ 100 | Xtrackers FTSE vs. WisdomTree Silver 3x | Xtrackers FTSE vs. Invesco Technology SP | Xtrackers FTSE vs. Invesco Technology SP |
| Xtrackers vs. Xtrackers MSCI | Xtrackers vs. Xtrackers FTSE 250 | Xtrackers vs. Xtrackers Ie Plc | Xtrackers 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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 | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance |