Correlation Between EA Series and DBX ETF
Can any of the company-specific risk be diversified away by investing in both EA Series and DBX ETF 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 EA Series and DBX ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and DBX ETF Trust, you can compare the effects of market volatilities on EA Series and DBX ETF 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 EA Series with a short position of DBX ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and DBX ETF.
Diversification Opportunities for EA Series and DBX ETF
Almost no diversification
The 3 months correlation between STXI and DBX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and DBX ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBX ETF Trust and EA Series 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 EA Series Trust are associated (or correlated) with DBX ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBX ETF Trust has no effect on the direction of EA Series i.e., EA Series and DBX ETF go up and down completely randomly.
Pair Corralation between EA Series and DBX ETF
Given the investment horizon of 90 days EA Series is expected to generate 1.23 times less return on investment than DBX ETF. But when comparing it to its historical volatility, EA Series Trust is 1.19 times less risky than DBX ETF. It trades about 0.06 of its potential returns per unit of risk. DBX ETF Trust is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,105 in DBX ETF Trust on March 22, 2025 and sell it today you would earn a total of 196.00 from holding DBX ETF Trust or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
EA Series Trust vs. DBX ETF Trust
Performance |
| Timeline |
| EA Series Trust |
| DBX ETF Trust |
EA Series and DBX ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and DBX ETF
The main advantage of trading using opposite EA Series and DBX ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, DBX ETF 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 DBX ETF will offset losses from the drop in DBX ETF's long position.| EA Series vs. First Trust Emerging | EA Series vs. First Trust Equity | EA Series vs. Thrivent High Yield | EA Series vs. Morningstar Unconstrained Allocation |
| DBX ETF vs. Vanguard Total Stock | DBX ETF vs. SPDR SP 500 | DBX ETF vs. iShares Core SP | DBX ETF vs. Vanguard Total Bond |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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