Correlation Between ISHS EU and Global X
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By analyzing existing cross correlation between ISHS EU YE and Global X Bitcoin, you can compare the effects of market volatilities on ISHS EU 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 ISHS EU with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISHS EU and Global X.
Diversification Opportunities for ISHS EU and Global X
Very poor diversification
The 3 months correlation between ISHS and Global is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ISHS EU YE and Global X Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Bitcoin and ISHS EU 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 ISHS EU YE 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 Bitcoin has no effect on the direction of ISHS EU i.e., ISHS EU and Global X go up and down completely randomly.
Pair Corralation between ISHS EU and Global X
Assuming the 90 days trading horizon ISHS EU is expected to generate 5.51 times less return on investment than Global X. But when comparing it to its historical volatility, ISHS EU YE is 8.98 times less risky than Global X. It trades about 0.12 of its potential returns per unit of risk. Global X Bitcoin is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,204 in Global X Bitcoin on October 21, 2024 and sell it today you would earn a total of 317.00 from holding Global X Bitcoin or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ISHS EU YE vs. Global X Bitcoin
Performance |
| Timeline |
| ISHS EU YE |
| Global X Bitcoin |
ISHS EU and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISHS EU and Global X
The main advantage of trading using opposite ISHS EU and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISHS EU 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.| ISHS EU vs. UBS Fund Solutions | ISHS EU vs. Xtrackers II | ISHS EU vs. Xtrackers Nikkei 225 | ISHS EU vs. iShares VII PLC |
| Global X vs. UBS Fund Solutions | Global X vs. Xtrackers II | Global X vs. Xtrackers Nikkei 225 | Global X vs. iShares VII PLC |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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