Correlation Between Xtrackers LevDAX and Fair Isaac

Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX and Fair Isaac 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 LevDAX and Fair Isaac into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Xtrackers LevDAX and Fair Isaac Corp, you can compare the effects of market volatilities on Xtrackers LevDAX and Fair Isaac 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 LevDAX with a short position of Fair Isaac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Fair Isaac.

Diversification Opportunities for Xtrackers LevDAX and Fair Isaac

-0.38

Correlation Coefficient

Xtrackers LevDAX  Fair Isaac

Very good diversification

The 3 months correlation between Xtrackers and Fair is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX and Fair Isaac Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Isaac Corp and Xtrackers LevDAX 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 LevDAX are associated (or correlated) with Fair Isaac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Isaac Corp has no effect on the direction of Xtrackers LevDAX i.e., Xtrackers LevDAX and Fair Isaac go up and down completely randomly.

Pair Corralation between Xtrackers LevDAX and Fair Isaac

Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 0.42 times more return on investment than Fair Isaac. However, Xtrackers LevDAX is 2.41 times less risky than Fair Isaac. It trades about 0.19 of its potential returns per unit of risk. Fair Isaac Corp is currently generating about -0.08 per unit of risk. If you would invest  23,410  in Xtrackers LevDAX on April 23, 2025 and sell it today you would earn a total of  4,975  from holding Xtrackers LevDAX or generate 21.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Xtrackers LevDAX  vs.  Fair Isaac Corp

Xtrackers LevDAX

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Xtrackers LevDAX are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Xtrackers LevDAX reported solid returns over the last few months and may actually be approaching a breakup point.

Fair Isaac Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fair Isaac Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Xtrackers LevDAX and Fair Isaac

The main advantage of trading using opposite Xtrackers LevDAX and Fair Isaac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX position performs unexpectedly, Fair Isaac 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 Fair Isaac will offset losses from the drop in Fair Isaac's long position.

The idea behind Xtrackers LevDAX and Fair Isaac Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.