Correlation Between Global X and Main International
Can any of the company-specific risk be diversified away by investing in both Global X and Main International 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 Main International 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 Main International ETF, you can compare the effects of market volatilities on Global X and Main International 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 Main International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Main International.
Diversification Opportunities for Global X and Main International
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Main is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF 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 Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of Global X i.e., Global X and Main International go up and down completely randomly.
Pair Corralation between Global X and Main International
Given the investment horizon of 90 days Global X Funds is expected to generate 1.2 times more return on investment than Main International. However, Global X is 1.2 times more volatile than Main International ETF. It trades about 0.24 of its potential returns per unit of risk. Main International ETF is currently generating about 0.21 per unit of risk. If you would invest 3,777 in Global X Funds on November 4, 2024 and sell it today you would earn a total of 184.00 from holding Global X Funds or generate 4.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
Global X Funds vs. Main International ETF
Performance |
Timeline |
Global X Funds |
Main International ETF |
Global X and Main International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global X and Main International
The main advantage of trading using opposite Global X and Main International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Main International 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 Main International will offset losses from the drop in Main International's long position.Global X vs. Ultimus Managers Trust | Global X vs. American Beacon Select | Global X vs. First Trust Indxx | Global X vs. Direxion Daily SP |
Main International vs. ADTRAN Inc | Main International vs. International Business Machines | Main International vs. Integrated Ventures | Main International vs. Harmonic |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |