Correlation Between IShares SP and Global X
Can any of the company-specific risk be diversified away by investing in both IShares SP and Global X 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 IShares SP and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP 500 and Global X Short Term, you can compare the effects of market volatilities on IShares SP and Global X 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 IShares SP with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and Global X.
Diversification Opportunities for IShares SP and Global X
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IShares and Global is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 and Global X Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Short and IShares SP 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 iShares SP 500 are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Short has no effect on the direction of IShares SP i.e., IShares SP and Global X go up and down completely randomly.
Pair Corralation between IShares SP and Global X
If you would invest 8,186 in iShares SP 500 on September 1, 2024 and sell it today you would earn a total of 1,910 from holding iShares SP 500 or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.38% |
| Values | Daily Returns |
iShares SP 500 vs. Global X Short Term
Performance |
| Timeline |
| iShares SP 500 |
| Global X Short |
IShares SP and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and Global X
The main advantage of trading using opposite IShares SP and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| IShares SP vs. FT Vest Equity | IShares SP vs. Northern Lights | IShares SP vs. Dimensional International High | IShares SP vs. Matthews China Discovery |
| Global X vs. Vanguard Growth Index | Global X vs. iShares Russell 1000 | Global X vs. iShares SP 500 | Global X vs. iShares Core SP |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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