Correlation Between Xtrackers USD and DWS
Can any of the company-specific risk be diversified away by investing in both Xtrackers USD and DWS 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 USD and DWS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers USD High and DWS, you can compare the effects of market volatilities on Xtrackers USD and DWS 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 USD with a short position of DWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers USD and DWS.
Diversification Opportunities for Xtrackers USD and DWS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and DWS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers USD High and DWS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS and Xtrackers USD 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 USD High are associated (or correlated) with DWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS has no effect on the direction of Xtrackers USD i.e., Xtrackers USD and DWS go up and down completely randomly.
Pair Corralation between Xtrackers USD and DWS
If you would invest 3,615 in Xtrackers USD High on December 1, 2024 and sell it today you would earn a total of 57.00 from holding Xtrackers USD High or generate 1.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Xtrackers USD High vs. DWS
Performance |
Timeline |
Xtrackers USD High |
DWS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xtrackers USD and DWS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers USD and DWS
The main advantage of trading using opposite Xtrackers USD and DWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers USD position performs unexpectedly, DWS 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 DWS will offset losses from the drop in DWS's long position.Xtrackers USD vs. SPDR Bloomberg Emerging | Xtrackers USD vs. iShares Broad USD | Xtrackers USD vs. SPDR Barclays Intermediate | Xtrackers USD vs. Schwab Intermediate Term Treasury |
DWS vs. Xtrackers MSCI EAFE | DWS vs. iShares AsiaPacific Dividend | DWS vs. WBI Power Factor | DWS vs. Global X 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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