| MLPA Etf | | | USD 50.32 0.70 1.41% |
The current 90-days correlation between Global X MLP and Alerian Energy Infrastructure is 0.77 (i.e., Poor diversification). The correlation of Global X is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Global X Correlation With Market
Weak diversification
The correlation between Global X MLP and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Global X MLP and DJI in the same portfolio, assuming nothing else is changed.
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Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Global X MLP. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in american community survey.