Correlation Between Global X and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both Global X and Macquarie ETF 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 Global X and Macquarie ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Cloud and Macquarie ETF Trust, you can compare the effects of market volatilities on Global X and Macquarie ETF 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 Global X with a short position of Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Macquarie ETF.
Diversification Opportunities for Global X and Macquarie ETF
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Macquarie is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Global X Cloud and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie ETF Trust and Global X 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 Global X Cloud are associated (or correlated) with Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of Global X i.e., Global X and Macquarie ETF go up and down completely randomly.
Pair Corralation between Global X and Macquarie ETF
Given the investment horizon of 90 days Global X Cloud is expected to generate 1.86 times more return on investment than Macquarie ETF. However, Global X is 1.86 times more volatile than Macquarie ETF Trust. It trades about 0.49 of its potential returns per unit of risk. Macquarie ETF Trust is currently generating about -0.21 per unit of risk. If you would invest 2,050 in Global X Cloud on August 24, 2024 and sell it today you would earn a total of 363.00 from holding Global X Cloud or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Cloud vs. Macquarie ETF Trust
Performance |
| Timeline |
| Global X Cloud |
| Macquarie ETF Trust |
Global X and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Macquarie ETF
The main advantage of trading using opposite Global X and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Macquarie ETF 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.| Global X vs. SPDR SP Health | Global X vs. SPDR SP Health | Global X vs. Aquagold International | Global X vs. Morningstar Unconstrained Allocation |
| Macquarie ETF vs. iShares Infrastructure ETF | Macquarie ETF vs. Global X Cloud | Macquarie ETF vs. Global X Cybersecurity | Macquarie ETF vs. Invesco Dynamic Leisure |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |