Correlation Between CHII and Global X
Can any of the company-specific risk be diversified away by investing in both CHII 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 CHII and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHII and Global X MSCI, you can compare the effects of market volatilities on CHII 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 CHII with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHII and Global X.
Diversification Opportunities for CHII and Global X
Pay attention - limited upside
The 3 months correlation between CHII and Global is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding CHII and Global X MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X MSCI and CHII 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 CHII 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 MSCI has no effect on the direction of CHII i.e., CHII and Global X go up and down completely randomly.
Pair Corralation between CHII and Global X
If you would invest 1,548 in Global X MSCI on August 28, 2024 and sell it today you would earn a total of 376.00 from holding Global X MSCI or generate 24.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
CHII vs. Global X MSCI
Performance |
| Timeline |
| CHII |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global X MSCI |
CHII and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHII and Global X
The main advantage of trading using opposite CHII and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHII 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.| CHII vs. iShares MSCI Singapore | CHII vs. iShares MSCI Malaysia | CHII vs. iShares MSCI Australia | CHII vs. iShares MSCI South |
| Global X vs. iShares MSCI Singapore | Global X vs. iShares MSCI Malaysia | Global X vs. iShares MSCI Australia | Global X vs. iShares MSCI South |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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