Correlation Between IShares VII and Xtrackers LevDAX
Can any of the company-specific risk be diversified away by investing in both IShares VII and Xtrackers LevDAX 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 IShares VII and Xtrackers LevDAX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares VII PLC and Xtrackers LevDAX, you can compare the effects of market volatilities on IShares VII and Xtrackers LevDAX 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 IShares VII with a short position of Xtrackers LevDAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares VII and Xtrackers LevDAX.
Diversification Opportunities for IShares VII and Xtrackers LevDAX
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and Xtrackers is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding iShares VII PLC and Xtrackers LevDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers LevDAX and IShares VII 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 iShares VII PLC are associated (or correlated) with Xtrackers LevDAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers LevDAX has no effect on the direction of IShares VII i.e., IShares VII and Xtrackers LevDAX go up and down completely randomly.
Pair Corralation between IShares VII and Xtrackers LevDAX
Assuming the 90 days trading horizon IShares VII is expected to generate 1.9 times less return on investment than Xtrackers LevDAX. In addition to that, IShares VII is 1.06 times more volatile than Xtrackers LevDAX. It trades about 0.07 of its total potential returns per unit of risk. Xtrackers LevDAX is currently generating about 0.14 per unit of volatility. If you would invest 26,805 in Xtrackers LevDAX on July 16, 2025 and sell it today you would earn a total of 1,160 from holding Xtrackers LevDAX or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares VII PLC vs. Xtrackers LevDAX
Performance |
| Timeline |
| iShares VII PLC |
| Xtrackers LevDAX |
IShares VII and Xtrackers LevDAX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares VII and Xtrackers LevDAX
The main advantage of trading using opposite IShares VII and Xtrackers LevDAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares VII position performs unexpectedly, Xtrackers LevDAX 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 Xtrackers LevDAX will offset losses from the drop in Xtrackers LevDAX's long position.| IShares VII vs. iShares Govt Bond | IShares VII vs. iShares Global AAA AA | IShares VII vs. iShares Smart City | IShares VII vs. iShares Broad High |
| Xtrackers LevDAX vs. Xtrackers II Global | Xtrackers LevDAX vs. Xtrackers FTSE | Xtrackers LevDAX vs. Xtrackers SP 500 | Xtrackers LevDAX vs. Xtrackers MSCI |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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