| HDEF Etf | | | USD 29.89 0.01 0.03% |
The current 90-days correlation between Xtrackers MSCI EAFE and Global X MSCI is 0.74 (i.e., Poor diversification). The correlation of Xtrackers MSCI is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Xtrackers MSCI Correlation With Market
Very good diversification
The correlation between Xtrackers MSCI EAFE and DJI is -0.26 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers MSCI EAFE and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Xtrackers MSCI EAFE. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in consumer price index.