Correlation Between Xtrackers ShortDAX and SPDR MSCI
Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and SPDR MSCI 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 ShortDAX and SPDR MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers ShortDAX Daily and SPDR MSCI EM, you can compare the effects of market volatilities on Xtrackers ShortDAX and SPDR MSCI 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 ShortDAX with a short position of SPDR MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and SPDR MSCI.
Diversification Opportunities for Xtrackers ShortDAX and SPDR MSCI
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xtrackers and SPDR is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX Daily and SPDR MSCI EM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR MSCI EM and Xtrackers ShortDAX 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 ShortDAX Daily are associated (or correlated) with SPDR MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR MSCI EM has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and SPDR MSCI go up and down completely randomly.
Pair Corralation between Xtrackers ShortDAX and SPDR MSCI
Assuming the 90 days trading horizon Xtrackers ShortDAX Daily is expected to under-perform the SPDR MSCI. In addition to that, Xtrackers ShortDAX is 1.14 times more volatile than SPDR MSCI EM. It trades about -0.02 of its total potential returns per unit of risk. SPDR MSCI EM is currently generating about 0.13 per unit of volatility. If you would invest 7,000 in SPDR MSCI EM on May 23, 2025 and sell it today you would earn a total of 454.00 from holding SPDR MSCI EM or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Xtrackers ShortDAX Daily vs. SPDR MSCI EM
Performance |
| Timeline |
| Xtrackers ShortDAX Daily |
| SPDR MSCI EM |
Xtrackers ShortDAX and SPDR MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers ShortDAX and SPDR MSCI
The main advantage of trading using opposite Xtrackers ShortDAX and SPDR MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, SPDR MSCI 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 SPDR MSCI will offset losses from the drop in SPDR MSCI's long position.| Xtrackers ShortDAX vs. UBSFund Solutions MSCI | Xtrackers ShortDAX vs. Vanguard SP 500 | Xtrackers ShortDAX vs. iShares VII PLC | Xtrackers ShortDAX vs. iShares Core SP |
| SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR SP Utilities | SPDR MSCI vs. SPDR MSCI Europe | SPDR MSCI vs. SPDR Bloomberg Global |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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