Correlation Between Global X and CHIU
Can any of the company-specific risk be diversified away by investing in both Global X and CHIU 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 CHIU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Conscious and CHIU, you can compare the effects of market volatilities on Global X and CHIU 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 CHIU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and CHIU.
Diversification Opportunities for Global X and CHIU
Excellent diversification
The 3 months correlation between Global and CHIU is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Global X Conscious and CHIU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIU 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 Conscious are associated (or correlated) with CHIU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIU has no effect on the direction of Global X i.e., Global X and CHIU go up and down completely randomly.
Pair Corralation between Global X and CHIU
If you would invest 3,905 in Global X Conscious on August 26, 2024 and sell it today you would earn a total of 120.00 from holding Global X Conscious or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Global X Conscious vs. CHIU
Performance |
| Timeline |
| Global X Conscious |
| CHIU |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global X and CHIU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and CHIU
The main advantage of trading using opposite Global X and CHIU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, CHIU 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 CHIU will offset losses from the drop in CHIU's long position.| Global X vs. Morningstar Unconstrained Allocation | Global X vs. High Yield Municipal Fund | Global X vs. Via Renewables | Global X vs. Knife River |
| CHIU vs. iShares MSCI Singapore | CHIU vs. iShares MSCI Taiwan | CHIU vs. iShares MSCI Malaysia | CHIU vs. iShares MSCI Australia |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |