Correlation Between IShares Inflation and Global X
Can any of the company-specific risk be diversified away by investing in both IShares Inflation 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 Inflation 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 Inflation Hedged and Global X Funds, you can compare the effects of market volatilities on IShares Inflation 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 Inflation with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Inflation and Global X.
Diversification Opportunities for IShares Inflation and Global X
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IShares and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Inflation Hedged 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 IShares Inflation 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 Inflation Hedged 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 IShares Inflation i.e., IShares Inflation and Global X go up and down completely randomly.
Pair Corralation between IShares Inflation and Global X
If you would invest 0.00 in Global X Funds on January 11, 2025 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 | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
iShares Inflation Hedged vs. Global X Funds
Performance |
| Timeline |
| iShares Inflation Hedged |
| Global X Funds |
Risk-Adjusted Performance
Excellent
Weak | Strong |
IShares Inflation and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Inflation and Global X
The main advantage of trading using opposite IShares Inflation and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Inflation 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 Inflation vs. iShares 1 5 Year | IShares Inflation vs. iShares Broad USD | IShares Inflation vs. iShares 10 Year | IShares Inflation vs. SPDR Barclays Intermediate |
| Global X vs. Vanguard 0 3 Month | Global X vs. Global X Funds | Global X vs. Texas Capital Funds | Global X vs. Vanguard Ultra Short Treasury |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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