Correlation Between IShares Premium and GLOBAL X
Can any of the company-specific risk be diversified away by investing in both IShares Premium 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 IShares Premium and GLOBAL X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Premium Money and GLOBAL X HIGH, you can compare the effects of market volatilities on IShares Premium 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 IShares Premium with a short position of GLOBAL X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Premium and GLOBAL X.
Diversification Opportunities for IShares Premium and GLOBAL X
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and GLOBAL is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Premium Money and GLOBAL X HIGH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL X HIGH and IShares Premium 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 iShares Premium Money 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 HIGH has no effect on the direction of IShares Premium i.e., IShares Premium and GLOBAL X go up and down completely randomly.
Pair Corralation between IShares Premium and GLOBAL X
Assuming the 90 days trading horizon iShares Premium Money is expected to generate 1.04 times more return on investment than GLOBAL X. However, IShares Premium is 1.04 times more volatile than GLOBAL X HIGH. It trades about 0.68 of its potential returns per unit of risk. GLOBAL X HIGH is currently generating about 0.61 per unit of risk. If you would invest 5,003 in iShares Premium Money on September 25, 2024 and sell it today you would earn a total of 15.00 from holding iShares Premium Money or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Premium Money vs. GLOBAL X HIGH
Performance |
| Timeline |
| iShares Premium Money |
| GLOBAL X HIGH |
IShares Premium and GLOBAL X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Premium and GLOBAL X
The main advantage of trading using opposite IShares Premium and GLOBAL X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Premium 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.| IShares Premium vs. GLOBAL X HIGH | IShares Premium vs. Global X Cash | IShares Premium vs. iShares Canadian HYBrid | IShares Premium vs. Altagas Cum Red |
| GLOBAL X vs. Global X Cash | GLOBAL X vs. iShares Premium Money | GLOBAL X vs. iShares Canadian HYBrid | GLOBAL X vs. Altagas Cum Red |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |