Correlation Between BlackRock Latin and Global X
Can any of the company-specific risk be diversified away by investing in both BlackRock Latin 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 BlackRock Latin and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Latin American and Global X ETFs, you can compare the effects of market volatilities on BlackRock Latin 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 BlackRock Latin with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Latin and Global X.
Diversification Opportunities for BlackRock Latin and Global X
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BlackRock and Global is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Latin American and Global X ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X ETFs and BlackRock Latin 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 BlackRock Latin American 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 ETFs has no effect on the direction of BlackRock Latin i.e., BlackRock Latin and Global X go up and down completely randomly.
Pair Corralation between BlackRock Latin and Global X
Assuming the 90 days trading horizon BlackRock Latin is expected to generate 17.38 times less return on investment than Global X. But when comparing it to its historical volatility, BlackRock Latin American is 1.12 times less risky than Global X. It trades about 0.0 of its potential returns per unit of risk. Global X ETFs is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,498 in Global X ETFs on September 2, 2024 and sell it today you would earn a total of 427.00 from holding Global X ETFs or generate 28.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.98% |
| Values | Daily Returns |
BlackRock Latin American vs. Global X ETFs
Performance |
| Timeline |
| BlackRock Latin American |
| Global X ETFs |
BlackRock Latin and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Latin and Global X
The main advantage of trading using opposite BlackRock Latin and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Latin 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.| BlackRock Latin vs. Aberdeen New India | BlackRock Latin vs. Scottish Mortgage Investment | BlackRock Latin vs. Blackrock Energy and | BlackRock Latin vs. CT Private Equity |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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