Correlation Between Global X and PGAL
Can any of the company-specific risk be diversified away by investing in both Global X and PGAL 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 PGAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X MSCI and PGAL, you can compare the effects of market volatilities on Global X and PGAL 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 PGAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and PGAL.
Diversification Opportunities for Global X and PGAL
Significant diversification
The 3 months correlation between Global and PGAL is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Global X MSCI and PGAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGAL 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 MSCI are associated (or correlated) with PGAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGAL has no effect on the direction of Global X i.e., Global X and PGAL go up and down completely randomly.
Pair Corralation between Global X and PGAL
If you would invest 2,291 in Global X MSCI on August 31, 2024 and sell it today you would earn a total of 113.00 from holding Global X MSCI or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Global X MSCI vs. PGAL
Performance |
| Timeline |
| Global X MSCI |
| PGAL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and PGAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and PGAL
The main advantage of trading using opposite Global X and PGAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, PGAL 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 PGAL will offset losses from the drop in PGAL's long position.| Global X vs. HUMANA INC | Global X vs. SCOR PK | Global X vs. Aquagold International | Global X vs. Ab Pennsylvania Portfolio |
| PGAL vs. iShares MSCI Ireland | PGAL vs. Global X MSCI | PGAL vs. iShares MSCI Finland | PGAL vs. Global X MSCI |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |