Correlation Between Global X and Mackenzie All
Can any of the company-specific risk be diversified away by investing in both Global X and Mackenzie All 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 Mackenzie All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Natural and Mackenzie All Equity Allocation, you can compare the effects of market volatilities on Global X and Mackenzie All 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 Mackenzie All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Mackenzie All.
Diversification Opportunities for Global X and Mackenzie All
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Mackenzie is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Global X Natural and Mackenzie All Equity Allocatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie All 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 Natural are associated (or correlated) with Mackenzie All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie All Equity has no effect on the direction of Global X i.e., Global X and Mackenzie All go up and down completely randomly.
Pair Corralation between Global X and Mackenzie All
Assuming the 90 days trading horizon Global X Natural is expected to under-perform the Mackenzie All. In addition to that, Global X is 2.55 times more volatile than Mackenzie All Equity Allocation. It trades about 0.0 of its total potential returns per unit of risk. Mackenzie All Equity Allocation is currently generating about 0.16 per unit of volatility. If you would invest 1,987 in Mackenzie All Equity Allocation on September 4, 2024 and sell it today you would earn a total of 588.00 from holding Mackenzie All Equity Allocation or generate 29.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Global X Natural vs. Mackenzie All Equity Allocatio
Performance |
| Timeline |
| Global X Natural |
| Mackenzie All Equity |
Global X and Mackenzie All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Mackenzie All
The main advantage of trading using opposite Global X and Mackenzie All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Mackenzie All 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 Mackenzie All will offset losses from the drop in Mackenzie All's long position.| Global X vs. Global X Crude | Global X vs. Global X Silver | Global X vs. Global X Gold | Global X vs. Global X Active |
| Mackenzie All vs. Mackenzie Developed ex North | Mackenzie All vs. Mackenzie Global Sustainable | Mackenzie All vs. Mackenzie Aggregate Bond | Mackenzie All vs. Mackenzie Canadian Ultra |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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