Correlation Between Xtrackers USD and HDAW
Can any of the company-specific risk be diversified away by investing in both Xtrackers USD and HDAW 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 HDAW 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 HDAW, you can compare the effects of market volatilities on Xtrackers USD and HDAW 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 HDAW. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers USD and HDAW.
Diversification Opportunities for Xtrackers USD and HDAW
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and HDAW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers USD High and HDAW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HDAW 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 HDAW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HDAW has no effect on the direction of Xtrackers USD i.e., Xtrackers USD and HDAW go up and down completely randomly.
Pair Corralation between Xtrackers USD and HDAW
If you would invest 3,570 in Xtrackers USD High on December 28, 2024 and sell it today you would earn a total of 40.00 from holding Xtrackers USD High or generate 1.12% 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. HDAW
Performance |
Timeline |
Xtrackers USD High |
HDAW |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xtrackers USD and HDAW Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers USD and HDAW
The main advantage of trading using opposite Xtrackers USD and HDAW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers USD position performs unexpectedly, HDAW 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 HDAW will offset losses from the drop in HDAW'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 |
HDAW vs. Xtrackers MSCI EAFE | HDAW vs. iShares AsiaPacific Dividend | HDAW vs. WBI Power Factor | HDAW 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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