Correlation Between Global X and RBC Short
Can any of the company-specific risk be diversified away by investing in both Global X and RBC Short 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 RBC Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Enhanced and RBC Short Term, you can compare the effects of market volatilities on Global X and RBC Short 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 RBC Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and RBC Short.
Diversification Opportunities for Global X and RBC Short
Very good diversification
The 3 months correlation between Global and RBC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global X Enhanced and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term 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 Enhanced are associated (or correlated) with RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of Global X i.e., Global X and RBC Short go up and down completely randomly.
Pair Corralation between Global X and RBC Short
Assuming the 90 days trading horizon Global X Enhanced is expected to generate 4.87 times more return on investment than RBC Short. However, Global X is 4.87 times more volatile than RBC Short Term. It trades about 0.13 of its potential returns per unit of risk. RBC Short Term is currently generating about -0.05 per unit of risk. If you would invest 5,039 in Global X Enhanced on November 17, 2025 and sell it today you would earn a total of 1,118 from holding Global X Enhanced or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Global X Enhanced vs. RBC Short Term
Performance |
| Timeline |
| Global X Enhanced |
| RBC Short Term |
Global X and RBC Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and RBC Short
The main advantage of trading using opposite Global X and RBC Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, RBC Short 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 RBC Short will offset losses from the drop in RBC Short's long position.| Global X vs. BMO Equal Weight | Global X vs. BMO MSCI India | Global X vs. BMO Equal Weight | Global X vs. BMO MSCI China |
| RBC Short vs. BMO Mid Term IG | RBC Short vs. iShares Canadian Short | RBC Short vs. Global X Canadian | RBC Short vs. NBI Sustainable Canadian |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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