Correlation Between IXSE and Global X
Can any of the company-specific risk be diversified away by investing in both IXSE 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 IXSE and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IXSE and Global X Funds, you can compare the effects of market volatilities on IXSE 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 IXSE with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IXSE and Global X.
Diversification Opportunities for IXSE and Global X
Pay attention - limited upside
The 3 months correlation between IXSE and Global is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding IXSE and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and IXSE 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 IXSE 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 Funds has no effect on the direction of IXSE i.e., IXSE and Global X go up and down completely randomly.
Pair Corralation between IXSE and Global X
If you would invest 3,102 in Global X Funds on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Global X Funds or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
IXSE vs. Global X Funds
Performance |
| Timeline |
| IXSE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global X Funds |
IXSE and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IXSE and Global X
The main advantage of trading using opposite IXSE and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IXSE 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.| IXSE vs. Franklin FTSE India | IXSE vs. VanEck India Growth | IXSE vs. First Trust India | IXSE vs. Columbia India Consumer |
| Global X vs. Freedom Day Dividend | Global X vs. Davis Select International | Global X vs. iShares MSCI China | Global X vs. SmartETFs Dividend Builder |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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