Correlation Between IMGP DBi and Global X
Can any of the company-specific risk be diversified away by investing in both IMGP DBi 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 IMGP DBi and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iMGP DBi Managed and Global X Alternative, you can compare the effects of market volatilities on IMGP DBi 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 IMGP DBi with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMGP DBi and Global X.
Diversification Opportunities for IMGP DBi and Global X
Good diversification
The 3 months correlation between IMGP and Global is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding iMGP DBi Managed and Global X Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Alternative and IMGP DBi 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 iMGP DBi Managed 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 Alternative has no effect on the direction of IMGP DBi i.e., IMGP DBi and Global X go up and down completely randomly.
Pair Corralation between IMGP DBi and Global X
Given the investment horizon of 90 days IMGP DBi is expected to generate 2.21 times less return on investment than Global X. In addition to that, IMGP DBi is 1.36 times more volatile than Global X Alternative. It trades about 0.04 of its total potential returns per unit of risk. Global X Alternative is currently generating about 0.12 per unit of volatility. If you would invest 1,036 in Global X Alternative on August 27, 2024 and sell it today you would earn a total of 169.00 from holding Global X Alternative or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iMGP DBi Managed vs. Global X Alternative
Performance |
| Timeline |
| iMGP DBi Managed |
| Global X Alternative |
IMGP DBi and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMGP DBi and Global X
The main advantage of trading using opposite IMGP DBi and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMGP DBi 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.| IMGP DBi vs. KFA Mount Lucas | IMGP DBi vs. Simplify Exchange Traded | IMGP DBi vs. Simplify Interest Rate | IMGP DBi vs. First Trust Managed |
| Global X vs. Amplify BlackSwan Growth | Global X vs. RPAR Risk Parity | Global X vs. WisdomTree International Efficient | Global X vs. iMGP DBi Managed |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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