Correlation Between Martin Currie and Global X
Can any of the company-specific risk be diversified away by investing in both Martin Currie 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 Martin Currie and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Sustainable and Global X Disruptive, you can compare the effects of market volatilities on Martin Currie 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 Martin Currie with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Global X.
Diversification Opportunities for Martin Currie and Global X
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martin and Global is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and Global X Disruptive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Disruptive and Martin Currie 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 Martin Currie Sustainable 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 Disruptive has no effect on the direction of Martin Currie i.e., Martin Currie and Global X go up and down completely randomly.
Pair Corralation between Martin Currie and Global X
Given the investment horizon of 90 days Martin Currie Sustainable is expected to generate 0.49 times more return on investment than Global X. However, Martin Currie Sustainable is 2.06 times less risky than Global X. It trades about -0.15 of its potential returns per unit of risk. Global X Disruptive is currently generating about -0.07 per unit of risk. If you would invest 1,413 in Martin Currie Sustainable on September 4, 2024 and sell it today you would lose (48.00) from holding Martin Currie Sustainable or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Sustainable vs. Global X Disruptive
Performance |
| Timeline |
| Martin Currie Sustainable |
| Global X Disruptive |
Martin Currie and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Global X
The main advantage of trading using opposite Martin Currie and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie 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.| Martin Currie vs. BrandywineGLOBAL Dynamic | Martin Currie vs. First Trust Growth | Martin Currie vs. Invesco NASDAQ Future | Martin Currie vs. Burney Factor Rotation |
| Global X vs. Vanguard Industrials Index | Global X vs. Vanguard Communication Services | Global X vs. Vanguard Consumer Discretionary | Global X vs. Vanguard Consumer Staples |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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