Correlation Between Tema Electrification and DBX ETF
Can any of the company-specific risk be diversified away by investing in both Tema Electrification 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 Tema Electrification and DBX ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema Electrification ETF and DBX ETF Trust, you can compare the effects of market volatilities on Tema Electrification 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 Tema Electrification with a short position of DBX ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema Electrification and DBX ETF.
Diversification Opportunities for Tema Electrification and DBX ETF
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tema and DBX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tema Electrification ETF 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 Tema Electrification 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 Tema Electrification ETF 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 Tema Electrification i.e., Tema Electrification and DBX ETF go up and down completely randomly.
Pair Corralation between Tema Electrification and DBX ETF
Given the investment horizon of 90 days Tema Electrification ETF is expected to generate 0.87 times more return on investment than DBX ETF. However, Tema Electrification ETF is 1.14 times less risky than DBX ETF. It trades about 0.1 of its potential returns per unit of risk. DBX ETF Trust is currently generating about 0.05 per unit of risk. If you would invest 2,225 in Tema Electrification ETF on March 23, 2025 and sell it today you would earn a total of 221.00 from holding Tema Electrification ETF or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tema Electrification ETF vs. DBX ETF Trust
Performance |
| Timeline |
| Tema Electrification ETF |
| DBX ETF Trust |
Tema Electrification and DBX ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema Electrification and DBX ETF
The main advantage of trading using opposite Tema Electrification and DBX ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema Electrification 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.| Tema Electrification vs. iShares Dividend and | Tema Electrification vs. Martin Currie Sustainable | Tema Electrification vs. AdvisorShares Gerber Kawasaki | Tema Electrification vs. Amplify ETF Trust |
| DBX ETF vs. iShares Dividend and | DBX ETF vs. Martin Currie Sustainable | DBX ETF vs. AdvisorShares Gerber Kawasaki | DBX ETF vs. Amplify ETF Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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