Correlation Between Global X and CI ONE
Can any of the company-specific risk be diversified away by investing in both Global X and CI ONE 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 ONE 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 ONE Global, you can compare the effects of market volatilities on Global X and CI ONE 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 ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and CI ONE.
Diversification Opportunities for Global X and CI ONE
Almost no diversification
The 3 months correlation between Global and ONEQ is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Global X Big and CI ONE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI ONE Global 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 ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI ONE Global has no effect on the direction of Global X i.e., Global X and CI ONE go up and down completely randomly.
Pair Corralation between Global X and CI ONE
Assuming the 90 days trading horizon Global X Big is expected to generate 3.34 times more return on investment than CI ONE. However, Global X is 3.34 times more volatile than CI ONE Global. It trades about 0.1 of its potential returns per unit of risk. CI ONE Global is currently generating about 0.11 per unit of risk. If you would invest 1,285 in Global X Big on September 3, 2024 and sell it today you would earn a total of 2,085 from holding Global X Big or generate 162.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Big vs. CI ONE Global
Performance |
| Timeline |
| Global X Big |
| CI ONE Global |
Global X and CI ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and CI ONE
The main advantage of trading using opposite Global X and CI ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, CI ONE 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 ONE will offset losses from the drop in CI ONE's long position.| Global X vs. Blockchain Technologies ETF | Global X vs. Global X Robotics | Global X vs. Evolve Automobile Innovation | Global X vs. Evolve Innovation Index |
| CI ONE vs. CI MidCap Dividend | CI ONE vs. CI Yield Enhanced | CI ONE vs. CI Canadian Short Term | CI ONE vs. CI ONE North |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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