Correlation Between Global X and TD International
Can any of the company-specific risk be diversified away by investing in both Global X and TD 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 TD 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 TD International Equity, you can compare the effects of market volatilities on Global X and TD 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 TD International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and TD International.
Diversification Opportunities for Global X and TD International
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and TPE is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Global X Big and TD International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD International Equity 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 TD International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD International Equity has no effect on the direction of Global X i.e., Global X and TD International go up and down completely randomly.
Pair Corralation between Global X and TD International
Assuming the 90 days trading horizon Global X Big is expected to generate 3.33 times more return on investment than TD International. However, Global X is 3.33 times more volatile than TD International Equity. It trades about 0.1 of its potential returns per unit of risk. TD International Equity is currently generating about 0.07 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Big vs. TD International Equity
Performance |
| Timeline |
| Global X Big |
| TD International Equity |
Global X and TD International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and TD International
The main advantage of trading using opposite Global X and TD International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, TD 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 TD International will offset losses from the drop in TD International'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 |
| TD International vs. Fidelity Canadian High | TD International vs. Fidelity High Dividend | TD International vs. Fidelity High Dividend | TD International vs. Fidelity Dividend for |
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
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| 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 | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |