Correlation Between Global X and IShares
Can any of the company-specific risk be diversified away by investing in both Global X and IShares 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 IShares 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 IShares, you can compare the effects of market volatilities on Global X and IShares 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 IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and IShares.
Diversification Opportunities for Global X and IShares
Pay attention - limited upside
The 3 months correlation between Global and IShares is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Global X Cloud and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares 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 IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of Global X i.e., Global X and IShares go up and down completely randomly.
Pair Corralation between Global X and IShares
If you would invest 2,103 in Global X Cloud on August 30, 2024 and sell it today you would earn a total of 355.00 from holding Global X Cloud or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Global X Cloud vs. IShares
Performance |
| Timeline |
| Global X Cloud |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and IShares
The main advantage of trading using opposite Global X and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' long position.| Global X vs. WisdomTree Cloud Computing | Global X vs. First Trust Cloud | Global X vs. Global X FinTech | Global X vs. Global X Cybersecurity |
| IShares vs. First Trust Nasdaq | IShares vs. Global X Robotics | IShares vs. Robo Global Robotics | IShares vs. iShares Cybersecurity and |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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