Correlation Between Global X and Mackenzie Aggregate
Can any of the company-specific risk be diversified away by investing in both Global X and Mackenzie Aggregate 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 Aggregate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Uranium and Mackenzie Aggregate Bond, you can compare the effects of market volatilities on Global X and Mackenzie Aggregate 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 Aggregate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Mackenzie Aggregate.
Diversification Opportunities for Global X and Mackenzie Aggregate
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Mackenzie is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Global X Uranium and Mackenzie Aggregate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Aggregate Bond 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 Uranium are associated (or correlated) with Mackenzie Aggregate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Aggregate Bond has no effect on the direction of Global X i.e., Global X and Mackenzie Aggregate go up and down completely randomly.
Pair Corralation between Global X and Mackenzie Aggregate
Assuming the 90 days trading horizon Global X Uranium is expected to generate 3.92 times more return on investment than Mackenzie Aggregate. However, Global X is 3.92 times more volatile than Mackenzie Aggregate Bond. It trades about 0.13 of its potential returns per unit of risk. Mackenzie Aggregate Bond is currently generating about 0.16 per unit of risk. If you would invest 3,864 in Global X Uranium on September 1, 2024 and sell it today you would earn a total of 190.00 from holding Global X Uranium or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Uranium vs. Mackenzie Aggregate Bond
Performance |
| Timeline |
| Global X Uranium |
| Mackenzie Aggregate Bond |
Global X and Mackenzie Aggregate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Mackenzie Aggregate
The main advantage of trading using opposite Global X and Mackenzie Aggregate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Mackenzie Aggregate 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 Aggregate will offset losses from the drop in Mackenzie Aggregate's long position.| Global X vs. Sprott Physical Uranium | Global X vs. Global X Lithium | Global X vs. Global Atomic Corp | Global X vs. NexGen Energy |
| Mackenzie Aggregate vs. PIMCO Global Short | Mackenzie Aggregate vs. Mackenzie Core Plus | Mackenzie Aggregate vs. Mackenzie Global Fixed |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |