Correlation Between Global X and CI International
Can any of the company-specific risk be diversified away by investing in both Global X and CI International 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 CI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Big and CI International Quality, you can compare the effects of market volatilities on Global X and CI International 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 CI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and CI International.
Diversification Opportunities for Global X and CI International
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and IQD is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global X Big and CI International Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI International Quality 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 Big are associated (or correlated) with CI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI International Quality has no effect on the direction of Global X i.e., Global X and CI International go up and down completely randomly.
Pair Corralation between Global X and CI International
Assuming the 90 days trading horizon Global X Big is expected to generate 3.29 times more return on investment than CI International. However, Global X is 3.29 times more volatile than CI International Quality. It trades about 0.16 of its potential returns per unit of risk. CI International Quality is currently generating about 0.02 per unit of risk. If you would invest 2,646 in Global X Big on September 12, 2024 and sell it today you would earn a total of 635.00 from holding Global X Big or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Global X Big vs. CI International Quality
Performance |
| Timeline |
| Global X Big |
| CI International Quality |
Global X and CI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and CI International
The main advantage of trading using opposite Global X and CI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, CI International 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 CI International will offset losses from the drop in CI International's long position.| Global X vs. iShares SPTSX 60 | Global X vs. iShares Core SP | Global X vs. iShares Core SPTSX | Global X vs. BMO Aggregate Bond |
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 CEOs Directory module to screen CEOs from public companies around the world.
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