Correlation Between Xtrackers and Xtrackers FTSE
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By analyzing existing cross correlation between Xtrackers II Global and Xtrackers FTSE, you can compare the effects of market volatilities on Xtrackers and Xtrackers FTSE 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 Xtrackers FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Xtrackers FTSE.
Diversification Opportunities for Xtrackers and Xtrackers FTSE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xtrackers and Xtrackers is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II Global and Xtrackers FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers FTSE 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 Global are associated (or correlated) with Xtrackers FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers FTSE has no effect on the direction of Xtrackers i.e., Xtrackers and Xtrackers FTSE go up and down completely randomly.
Pair Corralation between Xtrackers and Xtrackers FTSE
Assuming the 90 days trading horizon Xtrackers is expected to generate 10.64 times less return on investment than Xtrackers FTSE. But when comparing it to its historical volatility, Xtrackers II Global is 5.13 times less risky than Xtrackers FTSE. It trades about 0.03 of its potential returns per unit of risk. Xtrackers FTSE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,207 in Xtrackers FTSE on September 5, 2024 and sell it today you would earn a total of 791.00 from holding Xtrackers FTSE or generate 35.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xtrackers II Global vs. Xtrackers FTSE
Performance |
Timeline |
Xtrackers II Global |
Xtrackers FTSE |
Xtrackers and Xtrackers FTSE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers and Xtrackers FTSE
The main advantage of trading using opposite Xtrackers and Xtrackers FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, Xtrackers FTSE 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 FTSE will offset losses from the drop in Xtrackers FTSE's long position.Xtrackers vs. UBS Fund Solutions | Xtrackers vs. Xtrackers II | Xtrackers vs. Xtrackers Nikkei 225 | Xtrackers vs. iShares VII PLC |
Xtrackers FTSE vs. UBS Fund Solutions | Xtrackers FTSE vs. Xtrackers II | Xtrackers FTSE vs. Xtrackers Nikkei 225 | Xtrackers FTSE vs. iShares VII PLC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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