Correlation Between Dws Equity and Real Assets
Can any of the company-specific risk be diversified away by investing in both Dws Equity and Real Assets 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 Dws Equity and Real Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dws Equity Sector and Real Assets Portfolio, you can compare the effects of market volatilities on Dws Equity and Real Assets 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 Dws Equity with a short position of Real Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Equity and Real Assets.
Diversification Opportunities for Dws Equity and Real Assets
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dws and Real is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dws Equity Sector and Real Assets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Assets Portfolio and Dws Equity 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 Dws Equity Sector are associated (or correlated) with Real Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Assets Portfolio has no effect on the direction of Dws Equity i.e., Dws Equity and Real Assets go up and down completely randomly.
Pair Corralation between Dws Equity and Real Assets
Assuming the 90 days horizon Dws Equity Sector is expected to generate 2.1 times more return on investment than Real Assets. However, Dws Equity is 2.1 times more volatile than Real Assets Portfolio. It trades about 0.23 of its potential returns per unit of risk. Real Assets Portfolio is currently generating about 0.13 per unit of risk. If you would invest 1,877 in Dws Equity Sector on June 5, 2025 and sell it today you would earn a total of 152.00 from holding Dws Equity Sector or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 70.49% |
| Values | Daily Returns |
Dws Equity Sector vs. Real Assets Portfolio
Performance |
| Timeline |
| Dws Equity Sector |
| Real Assets Portfolio |
Risk-Adjusted Performance
Fair
Weak | Strong |
Dws Equity and Real Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dws Equity and Real Assets
The main advantage of trading using opposite Dws Equity and Real Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Equity position performs unexpectedly, Real Assets 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 Real Assets will offset losses from the drop in Real Assets' long position.| Dws Equity vs. Deutsche Gnma Fund | Dws Equity vs. Deutsche Short Term Municipal | Dws Equity vs. Deutsche Short Term Municipal | Dws Equity vs. Deutsche Science And |
| Real Assets vs. Locorr Dynamic Equity | Real Assets vs. Rbc China Equity | Real Assets vs. Old Westbury Large | Real Assets vs. Gmo International Equity |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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