Correlation Between SPDR Bloomberg and Global X
Can any of the company-specific risk be diversified away by investing in both SPDR Bloomberg and Global X 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 SPDR Bloomberg and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Bloomberg 1 3 and Global X Funds, you can compare the effects of market volatilities on SPDR Bloomberg and Global X 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 SPDR Bloomberg with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Bloomberg and Global X.
Diversification Opportunities for SPDR Bloomberg and Global X
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between SPDR and Global is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Bloomberg 1 3 and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and SPDR Bloomberg 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 SPDR Bloomberg 1 3 are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of SPDR Bloomberg i.e., SPDR Bloomberg and Global X go up and down completely randomly.
Pair Corralation between SPDR Bloomberg and Global X
Considering the 90-day investment horizon SPDR Bloomberg is expected to generate 273.5 times less return on investment than Global X. But when comparing it to its historical volatility, SPDR Bloomberg 1 3 is 4311.05 times less risky than Global X. It trades about 1.17 of its potential returns per unit of risk. Global X Funds is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Global X Funds on September 1, 2024 and sell it today you would earn a total of 10,046 from holding Global X Funds or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 80.66% |
| Values | Daily Returns |
SPDR Bloomberg 1 3 vs. Global X Funds
Performance |
| Timeline |
| SPDR Bloomberg 1 |
| Global X Funds |
SPDR Bloomberg and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Bloomberg and Global X
The main advantage of trading using opposite SPDR Bloomberg and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Bloomberg position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| SPDR Bloomberg vs. Global X Funds | SPDR Bloomberg vs. US Treasury 12 | SPDR Bloomberg vs. Tidal Trust II | SPDR Bloomberg vs. Franklin Liberty Treasury |
| Global X vs. iShares Interest Rate | Global X vs. iShares Interest Rate | Global X vs. iShares Edge Investment | Global X vs. iShares Inflation Hedged |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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