Correlation Between Mackenzie Core and Global X
Can any of the company-specific risk be diversified away by investing in both Mackenzie Core 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 Core 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 Core Plus and Global X Active, you can compare the effects of market volatilities on Mackenzie Core 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 Core with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Core and Global X.
Diversification Opportunities for Mackenzie Core and Global X
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mackenzie and Global is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Core Plus and Global X Active in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Active and Mackenzie Core 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 Core Plus 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 Active has no effect on the direction of Mackenzie Core i.e., Mackenzie Core and Global X go up and down completely randomly.
Pair Corralation between Mackenzie Core and Global X
Assuming the 90 days trading horizon Mackenzie Core Plus is expected to under-perform the Global X. In addition to that, Mackenzie Core is 2.67 times more volatile than Global X Active. It trades about -0.09 of its total potential returns per unit of risk. Global X Active is currently generating about 0.12 per unit of volatility. If you would invest 1,002 in Global X Active on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Global X Active or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mackenzie Core Plus vs. Global X Active
Performance |
| Timeline |
| Mackenzie Core Plus |
| Global X Active |
Mackenzie Core and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Core and Global X
The main advantage of trading using opposite Mackenzie Core and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Core 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 Core vs. Mackenzie Core Plus | Mackenzie Core vs. Mackenzie Floating Rate | Mackenzie Core vs. Mackenzie Unconstrained Bond | Mackenzie Core vs. Mackenzie Canadian Short |
| Global X vs. Mackenzie Canadian Aggregate | Global X vs. Mackenzie Canadian Short | Global X vs. Mackenzie Core Plus | Global X vs. Mackenzie Investment Grade |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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