Correlation Between Global X and DBX ETF
Can any of the company-specific risk be diversified away by investing in both Global X and DBX ETF 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 DBX ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X MSCI and DBX ETF Trust, you can compare the effects of market volatilities on Global X and DBX ETF 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 DBX ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and DBX ETF.
Diversification Opportunities for Global X and DBX ETF
Weak diversification
The 3 months correlation between Global and DBX is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Global X MSCI and DBX ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBX ETF Trust 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 MSCI are associated (or correlated) with DBX ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBX ETF Trust has no effect on the direction of Global X i.e., Global X and DBX ETF go up and down completely randomly.
Pair Corralation between Global X and DBX ETF
Given the investment horizon of 90 days Global X MSCI is expected to generate 1.56 times more return on investment than DBX ETF. However, Global X is 1.56 times more volatile than DBX ETF Trust. It trades about 0.13 of its potential returns per unit of risk. DBX ETF Trust is currently generating about -0.03 per unit of risk. If you would invest 2,444 in Global X MSCI on September 12, 2024 and sell it today you would earn a total of 62.00 from holding Global X MSCI or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X MSCI vs. DBX ETF Trust
Performance |
| Timeline |
| Global X MSCI |
| DBX ETF Trust |
Global X and DBX ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and DBX ETF
The main advantage of trading using opposite Global X and DBX ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, DBX ETF 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 DBX ETF will offset losses from the drop in DBX ETF's long position.| Global X vs. Global X MSCI | Global X vs. Global X Alternative | Global X vs. iShares Emerging Markets | Global X vs. Global X SuperDividend |
| DBX ETF vs. SPDR Portfolio Aggregate | DBX ETF vs. WBI Power Factor | DBX ETF vs. Global X MSCI | DBX ETF vs. HUMANA INC |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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