Correlation Between Global X and Mackenzie Investment
Can any of the company-specific risk be diversified away by investing in both Global X and Mackenzie Investment 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 Investment 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 Investment Grade, you can compare the effects of market volatilities on Global X and Mackenzie Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Mackenzie Investment.
Diversification Opportunities for Global X and Mackenzie Investment
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Mackenzie is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Global X Canadian and Mackenzie Investment Grade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Investment 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Investment has no effect on the direction of Global X i.e., Global X and Mackenzie Investment go up and down completely randomly.
Pair Corralation between Global X and Mackenzie Investment
Assuming the 90 days trading horizon Global X Canadian is expected to generate 2.58 times more return on investment than Mackenzie Investment. However, Global X is 2.58 times more volatile than Mackenzie Investment Grade. It trades about 0.11 of its potential returns per unit of risk. Mackenzie Investment Grade is currently generating about 0.04 per unit of risk. If you would invest 1,106 in Global X Canadian on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Global X Canadian or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Global X Canadian vs. Mackenzie Investment Grade
Performance |
| Timeline |
| Global X Canadian |
| Mackenzie Investment |
Global X and Mackenzie Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Mackenzie Investment
The main advantage of trading using opposite Global X and Mackenzie Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Mackenzie Investment 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 Investment will offset losses from the drop in Mackenzie Investment's long position.| Global X vs. Global X NASDAQ 100 | Global X vs. Global X Gold | Global X vs. Real Estate E Commerce | Global X vs. Global X SPTSX |
| Mackenzie Investment vs. Mackenzie High Yield | Mackenzie Investment vs. Mackenzie Core Plus | Mackenzie Investment vs. Mackenzie Canadian Aggregate | Mackenzie Investment vs. Mackenzie Core Plus |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |