Correlation Between Global X and Mackenzie Global
Can any of the company-specific risk be diversified away by investing in both Global X and Mackenzie Global 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 Mackenzie Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Canadian and Mackenzie Global Infrastructure, you can compare the effects of market volatilities on Global X and Mackenzie Global 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 Mackenzie Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Mackenzie Global.
Diversification Opportunities for Global X and Mackenzie Global
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Mackenzie is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Global X Canadian and Mackenzie Global Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Global Inf 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 Canadian are associated (or correlated) with Mackenzie Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Global Inf has no effect on the direction of Global X i.e., Global X and Mackenzie Global go up and down completely randomly.
Pair Corralation between Global X and Mackenzie Global
Assuming the 90 days trading horizon Global X is expected to generate 1.89 times less return on investment than Mackenzie Global. In addition to that, Global X is 1.15 times more volatile than Mackenzie Global Infrastructure. It trades about 0.1 of its total potential returns per unit of risk. Mackenzie Global Infrastructure is currently generating about 0.21 per unit of volatility. If you would invest 13,948 in Mackenzie Global Infrastructure on August 28, 2024 and sell it today you would earn a total of 542.00 from holding Mackenzie Global Infrastructure or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Canadian vs. Mackenzie Global Infrastructur
Performance |
| Timeline |
| Global X Canadian |
| Mackenzie Global Inf |
Global X and Mackenzie Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Mackenzie Global
The main advantage of trading using opposite Global X and Mackenzie Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Mackenzie Global 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 Mackenzie Global will offset losses from the drop in Mackenzie Global's long position.| Global X vs. iShares SPTSX Capped | Global X vs. iShares SPTSX Global | Global X vs. iShares SPTSX 60 | Global X vs. iShares SPTSX Capped |
| Mackenzie Global vs. CI Global REIT | Mackenzie Global vs. CI Global Real | Mackenzie Global vs. CI Marret Alternative | Mackenzie Global vs. CI Global Financial |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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