Correlation Between Global X and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both Global X and IShares IBonds 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 IShares IBonds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and iShares iBonds Dec, you can compare the effects of market volatilities on Global X and IShares IBonds 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 IShares IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and IShares IBonds.
Diversification Opportunities for Global X and IShares IBonds
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and IShares is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and iShares iBonds Dec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds Dec 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 Funds are associated (or correlated) with IShares IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds Dec has no effect on the direction of Global X i.e., Global X and IShares IBonds go up and down completely randomly.
Pair Corralation between Global X and IShares IBonds
Given the investment horizon of 90 days Global X Funds is expected to generate 305.17 times more return on investment than IShares IBonds. However, Global X is 305.17 times more volatile than iShares iBonds Dec. It trades about 0.13 of its potential returns per unit of risk. iShares iBonds Dec is currently generating about 0.08 per unit of risk. If you would invest 0.00 in Global X Funds on August 29, 2024 and sell it today you would earn a total of 4,865 from holding Global X Funds or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.03% |
| Values | Daily Returns |
Global X Funds vs. iShares iBonds Dec
Performance |
| Timeline |
| Global X Funds |
| iShares iBonds Dec |
Global X and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and IShares IBonds
The main advantage of trading using opposite Global X and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, IShares IBonds 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 IShares IBonds will offset losses from the drop in IShares IBonds' long position.| Global X vs. Vanguard Total Stock | Global X vs. SPDR SP 500 | Global X vs. iShares Core SP | Global X vs. Vanguard Total Bond |
| IShares IBonds vs. Global X Funds | IShares IBonds vs. US Treasury 12 | IShares IBonds vs. Tidal Trust II | IShares IBonds vs. Franklin Liberty 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |