Correlation Between Xtrackers and Multi Units
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By analyzing existing cross correlation between Xtrackers II and Multi Units Luxembourg, you can compare the effects of market volatilities on Xtrackers and Multi Units 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 with a short position of Multi Units. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Multi Units.
Diversification Opportunities for Xtrackers and Multi Units
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and Multi is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and Multi Units Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units Luxembourg and Xtrackers 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 II are associated (or correlated) with Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units Luxembourg has no effect on the direction of Xtrackers i.e., Xtrackers and Multi Units go up and down completely randomly.
Pair Corralation between Xtrackers and Multi Units
Assuming the 90 days trading horizon Xtrackers II is expected to under-perform the Multi Units. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers II is 1.63 times less risky than Multi Units. The etf trades about -0.24 of its potential returns per unit of risk. The Multi Units Luxembourg is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,870 in Multi Units Luxembourg on April 23, 2025 and sell it today you would earn a total of 700.00 from holding Multi Units Luxembourg or generate 14.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Xtrackers II vs. Multi Units Luxembourg
Performance |
Timeline |
Xtrackers II |
Multi Units Luxembourg |
Xtrackers and Multi Units Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xtrackers and Multi Units
The main advantage of trading using opposite Xtrackers and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' long position.Xtrackers vs. Xtrackers II Global | Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI |
Multi Units vs. Multi Units France | Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units Luxembourg | Multi Units vs. Multi Units Luxembourg |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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