Correlation Between Xtrackers LevDAX and ALM Offensif
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By analyzing existing cross correlation between Xtrackers LevDAX and ALM Offensif, you can compare the effects of market volatilities on Xtrackers LevDAX and ALM Offensif 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 LevDAX with a short position of ALM Offensif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and ALM Offensif.
Diversification Opportunities for Xtrackers LevDAX and ALM Offensif
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and ALM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and ALM Offensif in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Offensif and Xtrackers LevDAX 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 LevDAX are associated (or correlated) with ALM Offensif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Offensif has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and ALM Offensif go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and ALM Offensif
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 3.9 times more return on investment than ALM Offensif. However, Xtrackers LevDAX is 3.9 times more volatile than ALM Offensif. It trades about 0.15 of its potential returns per unit of risk. ALM Offensif is currently generating about 0.22 per unit of risk. If you would invest 17,216 in Xtrackers LevDAX on September 6, 2024 and sell it today you would earn a total of 3,059 from holding Xtrackers LevDAX or generate 17.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Xtrackers LevDAX vs. ALM Offensif
Performance |
Timeline |
Xtrackers LevDAX |
ALM Offensif |
Xtrackers LevDAX and ALM Offensif Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers LevDAX and ALM Offensif
The main advantage of trading using opposite Xtrackers LevDAX and ALM Offensif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, ALM Offensif 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 ALM Offensif will offset losses from the drop in ALM Offensif's long position.Xtrackers LevDAX vs. Xtrackers II Global | Xtrackers LevDAX vs. Xtrackers FTSE | Xtrackers LevDAX vs. Xtrackers SP 500 | Xtrackers LevDAX vs. Xtrackers MSCI |
ALM Offensif vs. ALM Classic RA | ALM Offensif vs. Esfera Robotics R | ALM Offensif vs. R co Valor F | ALM Offensif vs. CM AM Monplus NE |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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