Correlation Between Global X and ProShares
Can any of the company-specific risk be diversified away by investing in both Global X and ProShares 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 ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Infrastructure and ProShares DJ Brookfield, you can compare the effects of market volatilities on Global X and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and ProShares.
Diversification Opportunities for Global X and ProShares
Poor diversification
The 3 months correlation between Global and ProShares is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Global X Infrastructure and ProShares DJ Brookfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares DJ Brookfield 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 Infrastructure are associated (or correlated) with ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares DJ Brookfield has no effect on the direction of Global X i.e., Global X and ProShares go up and down completely randomly.
Pair Corralation between Global X and ProShares
Given the investment horizon of 90 days Global X Infrastructure is expected to generate 2.01 times more return on investment than ProShares. However, Global X is 2.01 times more volatile than ProShares DJ Brookfield. It trades about 0.24 of its potential returns per unit of risk. ProShares DJ Brookfield is currently generating about 0.17 per unit of risk. If you would invest 3,794 in Global X Infrastructure on September 2, 2024 and sell it today you would earn a total of 779.00 from holding Global X Infrastructure or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Infrastructure vs. ProShares DJ Brookfield
Performance |
| Timeline |
| Global X Infrastructure |
| ProShares DJ Brookfield |
Global X and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and ProShares
The main advantage of trading using opposite Global X and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Global X vs. iShares Infrastructure ETF | Global X vs. Global X Cloud | Global X vs. Global X Cybersecurity | Global X vs. Invesco Dynamic Leisure |
| ProShares vs. FlexShares STOXX Global | ProShares vs. SPDR SP Global | ProShares vs. iShares Infrastructure ETF | ProShares vs. iShares Global Infrastructure |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance |