Germany (EWG) vs China (FXI)
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
Germany is Europe export powerhouse; China is the world factory. When EWG leads FXI, European integration with China remains intact but German demand or energy relief dominates. When FXI leads EWG, Chinese stimulus or domestic rotation drives it while German industrial cycle stalls. Both weakening together signals global-goods recession.
Cross-Asset Analysis
Germany / DAX (EWG) (iShares MSCI Germany ETF, proxy for the DAX and German equity market) and China Large-Cap (FXI) (iShares China Large-Cap ETF, proxy for Chinese equity market) are priced in separate markets, yet their co-movement tells macro desks something neither series reveals alone. Index construction choices inside Germany / DAX (EWG) and China Large-Cap (FXI), including weighting methodology and inclusion rules, create persistent tilts that show up in the spread. Mid-cycle stretches see the Germany / DAX (EWG)-China Large-Cap (FXI) spread compress as macro volatility stays low and factor returns normalize.
Germany / DAX (EWG) and China Large-Cap (FXI) look similar at a glance, but the embedded factor tilts between them matter a great deal over time. Factor tilts expressed through the Germany / DAX (EWG)-China Large-Cap (FXI) selection allow managers to adjust style exposure without changing their overall asset allocation. Corporate action events, including buybacks or spin-offs affecting constituents of Germany / DAX (EWG) or China Large-Cap (FXI), can distort the spread relative to its intended factor tilt.
Germany / DAX (EWG) and China Large-Cap (FXI) occupy the same asset class, and the relative performance between them isolates the specific factor that distinguishes one from the other. Overlay strategies trade the Germany / DAX (EWG)-China Large-Cap (FXI) spread through options or swaps when the underlying pair is directly tradable, sizing against realized spread volatility.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between Germany / DAX (EWG) and China Large-Cap (FXI)?+
Germany / DAX (EWG) and China Large-Cap (FXI) are connected through shared asset class exposure with different factor tilts. When the underlying asset class shifts, both respond, though with different sensitivities and at different speeds. The spread between Germany / DAX (EWG) and China Large-Cap (FXI) captures the specific macro signal that flows through this relationship.
When does Germany / DAX (EWG) typically lead China Large-Cap (FXI)?+
Germany / DAX (EWG) tends to lead China Large-Cap (FXI) during rotation episodes between the two factor exposures. In those periods, moves in Germany / DAX (EWG) precede corresponding moves in China Large-Cap (FXI) by days to weeks, depending on the transmission channel and the depth of each market.
How are Germany / DAX (EWG) and China Large-Cap (FXI) historically correlated?+
Long-run correlation between Germany / DAX (EWG) and China Large-Cap (FXI) varies by regime. Peers in the same asset class are highly correlated in direction, with the spread reflecting factor tilts and rotation dynamics. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the Germany / DAX (EWG)-China Large-Cap (FXI) relationship.
What macro conditions drive divergence between Germany / DAX (EWG) and China Large-Cap (FXI)?+
Divergence between Germany / DAX (EWG) and China Large-Cap (FXI) typically arises from index reconstitution, mega-cap earnings surprises, or liquidity differences between the peers. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in Germany / DAX (EWG) or China Large-Cap (FXI).
Is Germany / DAX (EWG) a hedge for China Large-Cap (FXI)?+
Peers like Germany / DAX (EWG) and China Large-Cap (FXI) do not hedge each other; both rise or fall with the shared asset class, and using the pair as a spread trade is different from using it as a hedge. Effective hedging requires matching the hedge to the specific risk being protected, and the Germany / DAX (EWG)-China Large-Cap (FXI) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.