Correlation Between Xtrackers Harvest and Simplify Next

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Can any of the company-specific risk be diversified away by investing in both Xtrackers Harvest and Simplify Next 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 Harvest and Simplify Next into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers Harvest CSI and Simplify Next Intangible, you can compare the effects of market volatilities on Xtrackers Harvest and Simplify Next 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 Harvest with a short position of Simplify Next. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers Harvest and Simplify Next.

Diversification Opportunities for Xtrackers Harvest and Simplify Next

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Xtrackers and Simplify is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers Harvest CSI and Simplify Next Intangible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Next Intangible and Xtrackers Harvest 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 Harvest CSI are associated (or correlated) with Simplify Next. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Next Intangible has no effect on the direction of Xtrackers Harvest i.e., Xtrackers Harvest and Simplify Next go up and down completely randomly.

Pair Corralation between Xtrackers Harvest and Simplify Next

Given the investment horizon of 90 days Xtrackers Harvest CSI is expected to generate 2.04 times more return on investment than Simplify Next. However, Xtrackers Harvest is 2.04 times more volatile than Simplify Next Intangible. It trades about 0.15 of its potential returns per unit of risk. Simplify Next Intangible is currently generating about 0.11 per unit of risk. If you would invest  3,159  in Xtrackers Harvest CSI on July 26, 2025 and sell it today you would earn a total of  477.00  from holding Xtrackers Harvest CSI or generate 15.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Xtrackers Harvest CSI  vs.  Simplify Next Intangible

 Performance 
       Timeline  
Xtrackers Harvest CSI 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Xtrackers Harvest CSI are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical indicators, Xtrackers Harvest unveiled solid returns over the last few months and may actually be approaching a breakup point.
Simplify Next Intangible 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Simplify Next Intangible are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Simplify Next is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Xtrackers Harvest and Simplify Next Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xtrackers Harvest and Simplify Next

The main advantage of trading using opposite Xtrackers Harvest and Simplify Next positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers Harvest position performs unexpectedly, Simplify Next 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 Simplify Next will offset losses from the drop in Simplify Next's long position.
The idea behind Xtrackers Harvest CSI and Simplify Next Intangible pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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