Correlation Between Global X and Managed Account
Can any of the company-specific risk be diversified away by investing in both Global X and Managed Account 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 Managed Account into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Hydrogen and Managed Account Series, you can compare the effects of market volatilities on Global X and Managed Account 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 Managed Account. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Managed Account.
Diversification Opportunities for Global X and Managed Account
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Managed is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Global X Hydrogen and Managed Account Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Managed Account Series 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 Hydrogen are associated (or correlated) with Managed Account. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Managed Account Series has no effect on the direction of Global X i.e., Global X and Managed Account go up and down completely randomly.
Pair Corralation between Global X and Managed Account
Given the investment horizon of 90 days Global X Hydrogen is expected to under-perform the Managed Account. In addition to that, Global X is 7.26 times more volatile than Managed Account Series. It trades about -0.05 of its total potential returns per unit of risk. Managed Account Series is currently generating about 0.07 per unit of volatility. If you would invest 801.00 in Managed Account Series on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Managed Account Series or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Global X Hydrogen vs. Managed Account Series
Performance |
| Timeline |
| Global X Hydrogen |
| Managed Account Series |
Global X and Managed Account Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Managed Account
The main advantage of trading using opposite Global X and Managed Account positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Managed Account 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 Managed Account will offset losses from the drop in Managed Account's long position.| Global X vs. Invesco Global Listed | Global X vs. SCOR PK | Global X vs. Morningstar Unconstrained Allocation | Global X vs. Thrivent High Yield |
| Managed Account vs. Pimco Income Fund | Managed Account vs. Pimco Income Fund | Managed Account vs. Pimco Incme Fund | Managed Account vs. Pimco Income Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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