Correlation Between Mackenzie Floating and Global X
Can any of the company-specific risk be diversified away by investing in both Mackenzie Floating 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 Mackenzie Floating and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Floating Rate and Global X Canadian, you can compare the effects of market volatilities on Mackenzie Floating 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 Mackenzie Floating with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Floating and Global X.
Diversification Opportunities for Mackenzie Floating and Global X
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mackenzie and Global is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Floating Rate and Global X Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Canadian and Mackenzie Floating 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 Mackenzie Floating Rate 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 Canadian has no effect on the direction of Mackenzie Floating i.e., Mackenzie Floating and Global X go up and down completely randomly.
Pair Corralation between Mackenzie Floating and Global X
Assuming the 90 days trading horizon Mackenzie Floating Rate is expected to generate 0.65 times more return on investment than Global X. However, Mackenzie Floating Rate is 1.55 times less risky than Global X. It trades about 0.11 of its potential returns per unit of risk. Global X Canadian is currently generating about 0.02 per unit of risk. If you would invest 1,479 in Mackenzie Floating Rate on August 25, 2024 and sell it today you would earn a total of 241.00 from holding Mackenzie Floating Rate or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Floating Rate vs. Global X Canadian
Performance |
| Timeline |
| Mackenzie Floating Rate |
| Global X Canadian |
Mackenzie Floating and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Floating and Global X
The main advantage of trading using opposite Mackenzie Floating and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Floating 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.| Mackenzie Floating vs. Mackenzie Developed ex North | Mackenzie Floating vs. Mackenzie Global Sustainable | Mackenzie Floating vs. Mackenzie Aggregate Bond | Mackenzie Floating vs. Mackenzie Canadian Ultra |
| Global X vs. Mackenzie Core Plus | Global X vs. Mackenzie Unconstrained Bond | Global X vs. Mackenzie Floating Rate | Global X vs. Mackenzie Canadian Aggregate |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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